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EU predicts Eurozone recession to continue in 2013

The European Union is predicting that the recession in the 17 countries that use the euro will continue through 2013 with unemployment remaining at record levels.

twitter-logo Associated Press   Brussels     Last Updated: May 3, 2013  | 16:07 IST

The European Union is predicting that the recession in the 17 countries that use the euro will continue through 2013 with unemployment remaining at record levels.

In Friday's spring economic forecast, the EU said gross domestic product (GDP) in the Eurozone will shrink by 0.4 per cent this year, better than the 0.6 per cent for 2012.

Some countries, however, will fare worse than others. In crisis-hit Cyprus, GDP is set fall by 8.7 per cent this year.

Commissioner Olli Rehn said "in view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis".

Unemployment across the Eurozone is expected to hit an average of 12.2 per cent, up from 11.4 per cent in 2012. In both Greece and Spain it is expected to peak at 27 per cent.

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