Eurozone growth forecasts were revised down sharply yesterday by the European Commission, which said the bloc was already in a “mild recession”.
However, its diverging fortunes were highlighted by a fourth consecutive monthly rise in German business confidence.
The escalation of the eurozone debt crisis late last year had made the growth outlook for countries such as Greece, Italy and Spain significantly bleaker, the commission warned. They were among 10 eurozone countries in or about to fall into recession, defined as two quarters of economic contraction.
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