EU predicts recession will continue through 2013

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

In its spring economic forecast on Friday, May 3, the EU said that gross domestic product in the eurozone will shrink by 0.4 percent this year, better than the 0.6 percent for 2012.

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

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

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