Bloomberg reported that the euro-area economy will shrink more than previously estimated in 2013 as part of a two-year slump that has pushed up unemployment to a record. The report was based on revised forecasts from the European Commission.

Based on the report, Bloomberg said GDP in the 17-nation region will fall 0.4% this year, compared with a February prediction of a 0.3%. This follows a 0.6% contraction in 2012 and shows the region headed for its first ever back-to-back years of falling output.

Bloomberg notes, according to the report, unemployment is expected to climb to 12.2% in 2013, up from 11.4% last year.

Link to Bloomberg story.: