EFN Report Summer 2012: Economic Outlook for the Euro Area in 2012 and 2013
In 2012 and 2013 we expect world production to grow modestly, since external conditions have deteriorated as growth dynamics appear to be declining in important emerging economies. However, the euro area crisis remains the central risk factor for the world economy. Euro area GDP is expected to decline 0.2 percent in 2012 when compared to 2011; for 2013 we expect fiscal policy to be a bit less restrictive and private investment to increase, with GDP expanding by 0.9%. The unemployment rate will remain well above 11%.