The EU has made up autumn forecast of economic development

14.11.2011 On the basis of the autumn forecast made by the EU the financial sector has been gradually improved. The budget deficit of the current year is about 4.75% of EU GDP and just over 4% of GDP in the euro zone. In 2012 it’s planned to reduce the budget deficit to 4% of EU GDP and 3.5% of GDP of the euro zone. In respect of debt to GDP EU: the period of 2012 will be the most difficult from economic point of view, where the total debt of the EU will be 85% of GDP and 90% in the euro zone, by 2013 the situation should have stabilized.
As for inflation it is expected to establish it at the level of 2%. Moreover, experts address the possibility of its further reducing already in 2012.
The forecast emphasized the areas of the EU economy that require special attention and careful consideration of measures for their rehabilitation, they are: the area of external debt, weak financial sector and significantly reduced world trade.

Expert’s opinion

“This forecast has once again indicated the spheres of the EU economy where it’s necessary to take immediate measures. In general the situation in the EU is not critical and, based on the review, will be much better next year. The planned reduction of commodity prices should have a positive impact on the inflow of investments into the EU. Let’s recall that further forecasts will be prepared in February 2012, the final one - in May 2012.”

On the basis: ec.europa.eu

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)