EU expects economic recovery in second half of 2009

The economy for the 27 EU countries is showing clear signs of recovery and looks set to return to growth in the second half of 2009, the European Commission said in its latest interim forecast released yesterday.

However, with the strong downturn at the end of 2008 and start of the year, the forecast for 2009 as a whole remains unchanged.

The study expects gross domestic product (GDP) to fall by 4 per cent in both the EU and the eurozone.

The commission usually publishes economic forecasts four times a year – comprehensive spring and autumn forecasts and smaller interim forecasts in February and September.

The report is based on updated projections for France, Germany, Italy, the Netherlands, Poland, Spain and the UK – together accounting for some 80 per cent of the EU's GDP.

The improving outlook for Europe reflects brighter prospects around the world. Some regions - notably emerging Asian economies - anticipate marked growth over the next six months, the report said.