Monday, September 13, 2010

EU Raises 2010 Growth Forecasts

Wall Street Journal
September 13, 2010

The European Commission on Monday raised its 2010 economic growth forecasts for the European Union and the euro zone, saying strong growth in industrial exports is driving a faster-than-expected recovery from the economic crisis.

The commission, the EU's executive arm, said the 27-nation bloc's economy will likely grow 1.8% in 2010, up from its forecast in May of 0.9%. Growth in the 16 countries that use the euro is expected at 1.7%, up from the May forecast of 0.9%, the commission said.

The EU's unexpectedly strong growth in the second quarter, fueled largely by strong sales from Germany's export sector, will lift the region's growth prospects for the entire year, the commission said. But growth during the second half is unlikely to repeat the second quarter's performance, according to the commission, even though a "double dip" recession is unlikely.

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