Brussels, 11/10/2002 (Agence Europe) - The European Commission on Thursday, again revised its growth forecasts for the third and fourth quarters of the year downwards. Commissioner Pedro Solbes' services are now predicting a rise in GDP of between 0.2% and 0.5% instead of the 0.3%-0.6% band forecast last month. The Commission explains that this situation arises from "a fall in household spending", with the inclement economic and industrial climate in the USA impacting on exports. This appears to confirm that the recovery in the Euro-zone will not be on schedule for the end of the year but rather for some time at the beginning of next year. Mr Solbes' spokesman confirmed that growth would not exceed 1% this year and that the Commission was revising downwards its forecasts of 2.9% growth for 2003 when it adopts its economic forecasts in November (See EUROPE 9 October, p 14 on Wim Duisenberg's declarations).
Euro-zone and E15 GDP rises by 0.4 according to Eurostat figures
Gross Domestic Product (GDP) grew by 0.4% in both the Euro-zone and EU15 during the second quarter of 2002, according to estimates out today from Eurostat. These results follow an increase of 0.4% in the Euro-zone and 0.3% in the EU15 in the first quarter of 2002. In comparison with the second quarter of 2001, GDP grew by 0.7% in the Euro-zone and by 0.8% in the EU15. During the second quarter of 2002, all EU Member States for which data are available experienced positive economic growth. Finland (+2.1%), Denmark (+1.1%), Sweden, the United Kingdom and Austria (+0.6% each) recorded the highest increases in GDP. Among the main components of domestic demand, household final consumption expenditure also grew in all Member States, being most dynamic in Finland (+1.8%) and in the United Kingdom (+1.3%).