EU's Almunia sees euro zone recession in 2009

BRUSSELS, Nov 27 (Reuters) - The euro zone is likely to be in recession next year, European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said on Thursday, reversing his Nov. 3 forecast of slight growth. "Downside risks are materialising. We need to revise our previous estimates to negative growth," Almunia told reporters. The European Commission forecast earlier this month that the euro zone economy would grow by 0.1 percent next year after an expected expansion of 1.2 percent this year. But Almunia said all data since early November pointed to a recession next year. The International Monetary Fund expects the currently 15-member euro zone to contract by 0.5 percent next year, and the Organisation for Economic Cooperation and Development sees a 0.6 percent fall. Almunia would not give a specific growth forecast for 2009, but said next year may not mark the end of the euro zone's troubles. "The crisis may not end in 2009," he said.