GDP Will be Hit by Fiscal Squeeze

Jun 16, 2010, 05:26 ET from Economist Intelligence Unit

LONDON, June 16, 2010 /PRNewswire/ -- Growth in the eurozone will be hit by government belt tightening, says the EIU in its latest forecast adding that the euro will also hover at a lower level against the US dollar in to 2011.

In an interview with financial broadcaster, Robert Ward of the Economist Intelligence Unit said while exporting countries such as Germany will benefit from a weaker euro, especially with exposure to emerging markets, growth across the region will continue to be weak.

"We still don't expect the eurozone as a whole to really do much better than about 0.7 per cent in terms of growth this year and pretty much the same next year. So not a disaster, but really quite uninspiring in the round."

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SOURCE Economist Intelligence Unit