EU increases 2010 growth forecast

The commission now expects growth in 2010 of 1.8% in the EU, up from an earlier estimate of 1%, and of 1.7% in the 16-member eurozone, up from 0.9%.

Its projection for the UK is now for expansion of 1.7%, up from 1.2%.

Meanwhile the head of the International Monetary Fund (IMF) warned the world labour market was in "dire straits".

Dominique Strauss-Khan, managing director of the IMF, said the recession had left a "wasteland of joblessness".

"We must acknowledge that the crisis will not be over until unemployment declines significantly," he said, calling growth and jobs the "most urgent problems".

Unveiling its latest growth forecasts, the European Commission said: "While activity is still expected to moderate in the second half of the year, the outlook is for a slightly improved quarterly profile compared to the spring forecast, due to the spill-over of some momentum from the second quarter."

However, despite its upward growth revisions, the commission added that the recovery remained fragile and said development in member states was "uneven"; Kazinform cites BBC.

See www.bbc.co.uk for full version.