GDP Will be Hit by Fiscal Squeeze

By Economist Intelligence Unit, PRNE
Tuesday, June 15, 2010

LONDON, June 16, 2010 - 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
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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