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Eurozone economies to shrink next year: Almunia

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Eurozone economies to shrink next year: Almunia

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Europe’s Commissioner for economic affairs has reversed his forecast of slight growth for the eurozone next year. Joaquin Almunia now says it will be in recession without doubt in 2009.

The change of heart has come in just three weeks. At the beginning of November, Almunia predicted modest growth in the eurozone of 0.1 per cent. Now he says all economic data since then point to shrinkage.

He would not give specific growth figures, but warned that 2009 might not mark the end of the eurozone’s troubles.