Eurozone recession to last through 2013, say new EC forecasts

European Union flags

Economic forecasts released by the European Commission today show the Commission expects eurozone GDP to contract by 0.3% in 2013 - a significant downward revision from their most recent previous forecast, which had predicted the currency union returning to growth this year.

The forecasts also expect consumer price index (CPI) inflation to drop throughout 2013 in the eurozone to 1.5% by the end of the year, with no pick-up foreseen in 2014 either.

The forecasts will increase pressure on the Euro

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