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Economic Performance European economy

EU Spring Forecasts

The EU Commission released its Spring Forecast today. The abstract states that:

The economic recovery is underway in the EU, although it is set to be a gradual one. The economic recession came to an end in the EU in the third quarter of last year, in large part thanks to the exceptional crisis measures put in place under the European Economic Recovery Plan, but also owing to some other temporary factors.

The speed of recovery is forecast to increasingly vary across EU countries, reflecting the extent of the housing-market correction needed, the size of the financial-services sector and the degree of internal and external imbalances.

Once you get beyond the positive start they do admit that there is significant uncertainty. Also it is hard to get excited about an EU unemployment rate of 10% and debt of 80% of GDP.

For Ireland they paint a positive picture for 2011 with 3% GDP growth and a slight reduction in the unemployment rate.