European Central Bank trims eurozone growth forecast for 2013
The European Central Bank (ECB) has lowered its growth forecast for the eurozone in 2013, as the debt crisis is taking heavy toll on the 17-nation bloc.
On Thursday, the ECB trimmed its growth forecast for this year to a midpoint of – 0.5 percent from a midpoint of – 0.3 percent announced previously in September 2012.
In December 2012, ECB President Mario Draghi issued a statnment saying “Available statistics and survey indicators continue to signal further weakness in activity in the last quarter of the year…weak activity is expected to extend into next year.”
Draghi also mentioned “uncertainties about the resolution of sovereign debt and governance issues in the euro area, geopolitical issues …” as the risks that could hamper future economic growth.
Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, and Spain.
The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.
