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EU expects eurozone to suffer mild recession

The 17-nation eurozone economy will suffer a modest recession this year despite recent signs of stabilization, particularly in financial markets, the European Union’s executive branch said Thursday. In its latest projections, the European Commission forecast a 0.3 percent contraction in the eurozone economy, with Greece leading the way downward with a massive 4.4 percent decline. That would be the fifth straight year of recession in Greece, which earlier this week clinched its second massive bailout package in less than two years. In its last forecast in November, the Commission predicted a 0.5 percent expansion across the eurozone economy following last year’s 1.4 percent growth.

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