Europe's economic recovery will continue into the second half of the year, though at a subdued pace, while unemployment will remain near record highs through next year, the European Commission said Tuesday.
The European Union's economy is expected to grow 0.5% over the second half of the year, leaving it flat for the whole year, and expand 1.4% in 2014, according to the Commission's fall forecast. Its last predictions, issued in May, had expected an economic decline of 0.1% in 2013.
The Commission, the EU's executive arm, also expects the 17-country euro-zone to continue its recovery from a protracted recession, from which it emerged in the second quarter. However, over 2013 as a whole, the euro-zone is still expected to record a decline of 0.4%
For next year, the Commission is penciling in 1.1% growth, downward marginally from its previous forecast of 1.2%
Rising business confidence and strengthening domestic demand are expected to underpin the recovery as governments also slow the pace of austerity measures such as spending cuts and tax increases.
The euro-zone's output, however, remains about 3% below the level recorded in 2008, when the global financial crisis was entering its most acute phase and Europe's debt crisis hadn't yet started, the report said.
The euro-zone's projected growth will also fail to create many jobs, leaving the unemployment rate at its record high of 12.2% this and next year, dropping to 11.8% only in 2015, according to the forecast.
