The Commission have released their updated economic forecasts for 2013 and 2014. With an estimated –0.6% contraction in 2012 the eurozone is forecast to contract by a further –0.3% in 2013.
Ireland is set to be the third fastest growing eurozone country with the 1.1% growth forecast behind only Estonia (3.0%) and Malta (1.5%). This is not a reflection of any strong performance in Ireland’s case. Inflation for the eurozone at 1.8% is “close to but below 2%” though.
The public balance for the eurozone is forecast to fall from -3.5% of GDP last year to –2.8% of GDP this year. No eurozone country is expected to run a surplus and at –7.3% of GDP Ireland will have the largest public deficit in the eurozone (the UK at –7.4% of GDP is expected to have the largest deficit in the EU27).