EU economy to shrink, despite earlier reports for growth

The European Commission got it wrong. After first predicting the economy for the eurozone would grow slightly in the coming months, members now say wait a minute, the economy will actually shrink.

Previous estimates were for overall gross domestic product gains of 0.1 percent for 2013, the BBC reports.

Now Commission Vice President Olli Rehn says the 17-nation bloc will actually feel its economy contract, to the tune of 0.3 percent.

This latest projection is more in line with assessments from other sources. The International Monetary Fund in January said the eurozone would drop into a mild recession this year, BBC says. That’s after initial IMF predictions were for a healthier economy throughout 2013. And the World Bank said similarly — after revising its earlier and more optimistic projections for the Eurozone.

Last to hold on to high economic hopes for the eurzone is European Central Bank President Mario Draghi. He still believes the region will see economic recovery, beginning this summer, BBC reports.

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