BRUSSELS (AFP) — European economic heavyweights Britain, Germany and Spain are headed for recession this year, the European Commission forecast on Wednesday.
The European Union's executive arm estimated that the three countries would see two consecutive quarters of economic contraction over the course of this year, which is how economists define a recession.
Buffeted by a wobbly housing market and turmoil on financial markets, Britain would see economic activity contract by 0.2 percent in both the third and fourth quarters, the EC said.
That would bring growth in Britain for the whole of 2008 to 1.1 percent, down from an April forecast of 1.7 percent.
The forecast added to the gathering gloom over the prospects for the economy, coming just a day after official data showed a further weakening of the manufacturing sector, upping the prospects of a recession.
Last week, a report by the Paris-based Organisation for Economic Cooperation and Development said it saw Britain sliding into recession in the second half of 2008.
According to the OECD report, the economy was seen contracting by between 0.3 and 1.2 percent in the third quarter, and by between 0.4 and 1.2 percent in the fourth.
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