The European Commission is forecasting that the recovery across the 28-country bloc will continue into the second half of the year, albeit at a tepid pace.

The executive arm of the European Union said Tuesday it expects the region's economy to grow by 0.5 percent over the second half of the year and be flat for the whole year. In its previous forecast in May, it predicted a 0.1 percent annual decline.

It also expects the 17-country eurozone to continue its recovery from recession in quarterly terms. However, over 2013 as a whole, the eurozone is still expected to have contracted 0.4 percent. In 2014 though, it is penciling in 1.1 percent growth.

The eurozone's unemployment is expected to remain at its record-high of 12.2 percent this year and next.