Euro zone: Brussels foresees a severe recession in 2009

The European Commission expects a severe recession in the euro zone this year with a GDP fall of 1.9% in the EU, followed by a spectacular unemployment rate increase, AFP informs. The Commission forecasts a light increase of 0.4% in 2010.

These previsions are more pessimistic than the ones put forward by the International Monetary Fund or those of the Central European Bank that were expecting a 0.5% decrease of GDP this year.

The European Commission expects to have higher unemployment rates that would reach 10% in 2009 from 7.5% in 2008 and 10.2% in 2010.