Eurozone recession to deepen; slower rebound expected

Eurozone economy is likely to almost grind to a halt in 2013, as all countries, including export-driven Germany, are hit by the region's deepening debt crisis. The European Commission downgraded its outlook for the 27-country bloc, saying the economy will grow by 0.1% in 2013, down from May's forecast of 1%. At the same time, the outlook for Europe's biggest economy was also cut to 0.8% from 1.7%. The unemployment in the region is expected to grow till 2014, and then it is going to decline slightly.

Also Wednesday, the European statistics office Eurostat said retail sales in the eurozone fell more than expected in September, adding to signs region's economy continues to deteriorate at an alarming rate. Retail sales erased 0.2% in September, down from a 0.2% increase in August.