Economic slowdown, growing energy prices and labour market stabilization – those are the key issues discussed in the European Economic Forecast, which has been released on 11 May by the European Commission. According to the European Commission, most Member States have entered or are moving into recession in 2011/2012.
Inside the euro area, the forecast predicts favourable grow in the German and the Irish economy. In Italy, Spain, Portugal and Greece, GDP growth is not expected until the end of 2012. Poland, Lithuania and Latvia are expected to grow significantly in 2012. Domestic demand is therefore expected to stay low, but a consolidated current – account balance is predicted thanks to dynamic global economy.

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