Eurozone growth rate reduced to 0.4%

THE rate of growth for the 12-country euro zone area for 2003 has been reduced to a mere 0.4% from the dismal April prediction of 1%.

Even Ireland, traditionally one of the economic star performers of the EU, was looking less healthy, according to a report delivered by Economic and Financial Affairs Commissioner Pedro Solbes.

For the year as a whole, real Gross Domestic Product (GDP) growth in Ireland has almost collapsed to 1.5% from just short of 7% in 2002. However, last year’s healthy growth was something of an illusion, because of the exceptional performance of the chemicals and pharmaceuticals sector. Gross National Income (GNI) gives a truer picture of growth and it was well behind the GDP figure, the EU report points out.