European Commission: eurozone economy to shrink in 2013February 22, 2013 - 14:35 AMT PanARMENIAN.Net - The European Commission says the eurozone economy will shrink in 2013, after previously predicting that it would grow slightly, BBC News reported. Delivering its winter forecast, vice-president Olli Rehn said the 17 economies in the eurozone would collectively shrink by 0.3% this year. The Commission had previously predicted overall GDP growth of 0.1%. But it is also predicting that the eurozone will see 0.7% growth in the fourth quarter. Most economic forecasters have been revising down their European growth estimates, after the global economic recovery showed signs of faltering in the final quarter of 2012. For example, in January the International Monetary Fund (IMF) said it expected the eurozone to fall into "mild recession" in 2013, having previously predicted growth. It also predicted that the UK would grow 1% in 2013, compared with the 1.1% previously forecast. The World Bank also revised down its global growth forecasts earlier in January. But European Central Bank (ECB) president Mario Draghi believes the eurozone will begin recovering in the second half of this year. And this week, Germany's Bundesbank said Europe's biggest economy would avoid recession and return to growth in the first quarter of 2013, after shrinking 0.6% in the last three months of 2012. It expects Germany to continue growing throughout 2013. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. Cyprus parliament honors Armenian genocide victims Acting House President Zacharias Koulias noted that April 24 marks the “black anniversary” of the Armenian genocide. Armenia PM, France envoy discuss regional matters Issues related to the consistent development of Armenia-France cooperation were discussed. |