April 4, 2005
WHERE THE ENLIGHTENMENT IS STILL ON:
European Commission cuts back eurozone growth predictions (Honor Mahony, 04.04.2005, EUOBSERVER)
The European Commission on Monday (4 April) slashed 2005 economic growth forecasts for the eurozone to 1.6% - down from the 2% predicted six months ago.Posted by Orrin Judd at April 4, 2005 12:35 PM"The second half of 2004 was very bad, very low growth rate, so the carryover for 2005 was not strong", said Economic Affairs Commissioner Joaquin Almunia presenting the Spring Economic Forecasts.
"We are estimating recovery along the year and at the end of 2005 we are expecting a growth rate according to the potential growth around two percent", said the Commissioner.
The Commission also revised down its predictions for the entire EU from 2.4 to 2 percent.
A recovery of 2% in 2005! EUtopia is in worse shape than I thought if 2% is considered a recovery.
Posted by: AML at April 4, 2005 2:41 PMAnd it's still only April. Wanta bet this is not revised down still further later this year?
Posted by: jd watson at April 4, 2005 3:07 PM1.6% -- 2% was last year's guess. The EC guesstimates always exaggerate, moreso farther out.
Given their past prediction trends I expect real growth numbers will be under 1%.
Posted by: Gideon at April 4, 2005 3:17 PMThese numbers do include the nations of Eastern Europe where economic growth is a mathematical necessity, don't they? In Slovakia and Romania, the only way you can go is up. In that case, the prognosis for Old Europe is even worse.
Posted by: bart at April 4, 2005 4:33 PMThey are making this constitution thing as hard as they can.
Posted by: Robert Schwartz at April 4, 2005 5:56 PM