Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Wednesday, August 20, 2014  

EU economy to grow 0.1% this year, rebound in 2014
BRUSSELS The euro zone economy will barely grow next year but pick up in 2014, the European Commission said on Wednesday, forecasting slower growth than governments in all the bloc’s biggest economies expect.

The EU’s executive arm said the economy of the 17 countries sharing the euro would grow only 0.1 per cent in 2013 after a bigger than previously forecast 0.4 per cent contraction this year as a result of the sovereign debt crisis.

Growth is predicted to rebound to 1.4 per cent in 2014 as structural reforms now under way start bearing fruit, the Commission said.

“The aggravation of the sovereign debt crisis in the first half of the year, with rising market concerns about the long-term viability of the euro area and negative feedbacks between banks’ funding pressures and economic activity... are the main reasons for the disappointing growth performance in 2012,” the Commission said.

The weak staring point will keep growth low to non-existent in 2013, it said, and any expansion would be mainly thanks to net exports, which will benefit from a recovery in global demand.

Domestic demand will make no contribution to growth well into 2013 as households curb spending amid record high unemployment and higher taxes imposed as part of fiscal consolidation efforts by governments.

Government spending cuts made to regain market confidence, will bring the overall budget deficit for the area down to 3.3 per cent of gross domestic product this year from 4.1 per cent in 2011. The shortfall will fall further to 2.6 per cent next year and 2.5 per cent in 2014, the Commission said.

“Europe is going through a difficult process of macroeconomic rebalancing, which will still last for some time,” EU Economic and Monetary Affairs Commissioner Olli Rehn said.

“Europe must continue to combine sound fiscal policies with structural reforms to create the conditions for sustainable growth to bring unemployment down from the current unacceptably high levels,” he said.

The Commission made less optimistic growth forecasts for all the biggest euro zone countries than their governments have.

Germany, the biggest in Europe, would grow 0.8 per cent in 2012 as Berlin expects, but only 0.8 per cent in 2013, rather than 1 per cent forecast by the government, the Commission said.

The bloc’s number two economy France would grow only 0.2 per cent this year, 0.4 per cent in 2013 and 1.2 per cent in 2014, rather than the 0.3, 0.8 and 2 per cent respectively forecast by Paris.

The French budget deficit would be 4.5 per cent of GDP this year, 3.5 per cent in 2013 and 2014, unless policies change, rather than 3.7 per cent for this year and 2.5 per cent and 2 per cent forecast by Paris for 2013 and 2014.

Italy will contract 0.5 per cent next year after a 2.3 per cent recession in 2012, more than twice the 0.2 per cent fall, which Rome sees next year.

Spain will suffer a recession almost three times deeper at 1.4 per cent in 2013 than the 0.5 per cent contraction predicted by Madrid, unless it takes additional steps.

Reuters
NEWS UPDATES
Oman
June inflation rate at 1.2pc lowest among GCC states
Visitors to Salalah surge 24pc
Forum helps entrepreneurs gain insight
‘Go-Green’ project to create art from recycled plastic
Meet discusses ways to boost family bonds
Workshop focuses on details of Entrepreneurship Awards
Nabhani invited to attend Spanish defence course
Symposium to assess work of municipalities, water sectors
2-day railway conference to begin today
Other Top Stories
IS militants halt Iraq bid to recapture Tikrit
His Majesty issues decree on public utility in Duqm
Ebola kills 84 in 3 days, toll hits 1,229, says WHO
6,000 rebels join Islamic State in July in Syria
Egypt urges US restraint in Missouri
India
Congress demand for opposition leader rejected
Top producers bribed arrested Censor Board CEO, claims CBI
Pak envoy meets Kashmiri separatists
Modi seeks people’s ideas on replacing plan panel
Supermarket says sorry for ‘biased’ ad
Growing cyber bullying poses threat to children
Court asks government to justify Archana’s appointment in CBI
15 more die in UP monsoon fury, Bihar toll hits 17
IAF to buy one more C-130J jet to replace crashed aircraft
2 sisters could be first women to be executed in country
CBI seeks details of companies over taking funds out of country
Court orders release of Irom Sharmila
Baby’s skeleton removed from womb after 36 years
Pakistan
Army enters Red Zone as PTI, PAT marchers advance
Back channel negotiators likely to convince Imran to stop stir
48 killed in air strikes on Taliban hideouts; six die in bomb attack
Islamabad a ‘legitimate stakeholder in Kashmir issue’
Road expansion to hit Lahore heritage
Opposition bids to stop dissolution of KP Assembly
Women brave tough conditions during march
Middle East
Libya’s factional fighting moves closer to Tripoli
IS campaign a nightmare for Iraq minorities
Turkish firm to send floating power plant to Gaza
S. Arabia opens new courts for family disputes
Egypt awards Suez project to army-linked firm
Asia
Karzai calls on rivals to unite, end poll impasse
Heinz recalls infant product in China over excessive lead levels
UN investigators ‘won’t be allowed into Lanka’ to probe war crimes
Australia, Indonesia agree to end spy row, mull defence ties
Aquino names Bautista to top civilian post
China crackdown on drugs ensnares celebrities
Business
Al Maha looks to float 7.94m-rial IPO on Sept. 16
S. Arabia to cap foreigners’ stake in firms
Brent unlikley to fall beyond $100 over geopolitical risks
IMF revises up Pakistan GDP growth to 4.3% on reforms
Arab Bank in bind over ‘terror funding’
Canada’s WSP bags two major airport deals
Sensex, Nifty climb new peak on inflows, falling oil prices
Foreign inflow into Pakistan plunges 80% to $24m
Brunei denies report of bid for Sahara hotel assets
Indian e-commerce firms line up $1.9b investment on infrastructure
Straits Financial appointed as clearing member at DME
Investors’ risk appetite lifts stocks
Maersk expects profit to hit $4.5b on firm business
BHP to create new firm as net rises 23.2%
Europe
Russia plans to bolster navy to ward off Nato
Move to remove statue of PKK rebel sparks clashes in Turkey, one killed
British police arrest man over death of stowaway
UK top bosses earn ‘131 times’ more than staff
France to propose new tax relief steps
Mountain of troubles awaits Hollande after summer holidays
Sports
Fabregas, Costa impress for Chelsea
Cech to stay despite losing spot: Jose
Suarez makes winning debut for Barca
Adler spares Hamburg blushes but Schalke humbled
Delhi Dynamos sign tallest goalkeeper
Garcia-Lopez rallies to topple Brown
Verstappen to make history as youngest Formula One driver
National coach to visit Majees mini club
Phelps back on big stage at PanPacs after no wins in US
South Africa sink Zimbabwe again
Oman Sail Extreme teams gear up for Cardiff
Oman’s inaugural National Optimist Championship ends
Americas
Curfew lifted, tension high in Missouri
Assange won’t leave embassy without ‘US assurances’
Cost of raising a child in middle-income family rises to $245,000 in US
459kg alligator caught in Alabama sets record for size
US Navy holds drone, manned fighter jet operations

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution