The eurozone is likely to be in recession next year, EU Economic and Monetary Affairs Commissioner Joaquin Almunia said yesterday, reversing his November 3 forecast of slight growth.
"Downside risks are materialising. We need to revise our previous estimates to negative growth," Mr Almunia told reporters.
The European Commission forecast earlier this month that the eurozone economy would grow by 0.1 per cent next year after an expected expansion of 1.2 per cent this year.
But Mr Almunia said all data since early November pointed to a recession next year.
The International Monetary Fund expects the currently 15-member eurozone to contract by 0.5 per cent next year, and the Organisation for Economic Cooperation and Development sees a 0.6 per cent fall.
Mr Almunia would not give a specific growth forecast for next year, but said it may not mark the end of the eurozone's troubles. "The crisis may not end in 2009," he said.