EC forecasts 4% GDP fall in EU member states

PanARMENIAN.Net - According to EC recent forecasts, GDP in EU member states will fall by 4% in 2009, but is expected to stabilize in 2010.



According to European Commission experts, economic index fall will slow down in the second half of 2009, before recovering moderately in 2010.



As a result of the economic crisis, unemployment rate will rise by 11%. According to absolute indexes, 8.5 million people in EU member states will lose their jobs in 2009-10, despite the fact that 9.5 million workplaces were opened in the region in 2006-08.



Budget deficit in EU member states is expected to make up 6% GDP in 2009 and 7.25% in 2010. For comparison, let's note that GDP budget deficit in EU member states made up 2.3% in 2008



According to EC experts, inflationary pressures will abate during the second and third quarters of the current year, falling by 1% in EC member states and 0.5% in Euro zone. In 2010, the inflation rate will increase tp 1.25%.



In view of global economic crisis, the EC forecasts are deemed highly questionable. There's a great risk that the situation may turn out much worse, depending on the crisis impact. On the other hand, experts believe that fiscal and international monetary policy will be highly effective in restoring economic stability.