EU Economy Predicted Fragile Recovery

According to a forecast by the European Commission on Feb.25, the European Union economy will gradually increase by 0.7 percent, but still facing headwinds

According to a forecast by the European Commission on Feb.25, the European Union economy will gradually increase by 0.7 percent, but still facing headwinds.

Both the EU and the euro area economy has turned for the better since the third quarter last year, ending the longest and deepest economic recession in EU's history. The exceptional crisis measures put in place in the EU played a major role in turning the economy around. But data showed that the recovery slowed down in the fourth quarter.

According to EC, based on the recovery of global economy, EU is gaining confidence in its performance, but uncertainties remain rife and risk of deteriorated financial situation still exists.

Debt crisis in Greece and worsen financial situations in some countries add to worries about the outlook of EU economy these days. But in EC's report, forecast upon the economic growth remain unchanged compared with that of Nov.2009.

EC also gave a predicted 1.4 percent and 1.1 percent inflation rate respectively for EU and euro area, similar with the last forecast.

There is no big change in the outlook of EU economy, said EC.

European Union Economic and Monetary Affairs Commissioner Olli Rehn said that EU "needs to work on two fronts: the economic recovery and the consolidation of our pubic finances" to "putting the European economy back on a strong and sustainable path."