independent

Wednesday 16 April 2014

Eurozone slides back into recession

The eurozone is back in recession, according to official figures.

The 17-country eurozone economy is back in recession.

Eurostat, the EU's statistics office, says the eurozone economy contracted by 0.1% in the July to September period from the quarter before.

That follows on from the 0.2% decline recorded in the second quarter and officially puts it in recession, commonly defined as two straight quarters of falling output.

The wider EU, which includes non-euro countries, avoided the same fate. It saw output rise 0.1% during the quarter, largely on the back of an Olympics-related boost in Britain.

Even Germany, the biggest eurozone economy, is struggling now as confidence drains in the face of the turmoil afflicting large parts of the eurozone, mainly the southern economies of Greece, Spain, Italy and Portugal.

The eurozone has dodged recession during its three-year debt crisis, mainly thanks to the strength of its largest single economy, Germany. But even that country is struggling now as demand falls off from the other members of the eurozone, mainly the southern economies of Greece, Spain, Italy and Portugal. Germany's economy grew a muted 0.2% in the third quarter, down from a 0.3% increase in the previous quarter.

Five eurozone countries are in recession - Greece, Spain, Italy, Portugal and Cyprus. Those five are at the front line of Europe's debt crisis and are enacting austerity measures, such as cuts to pensions and tax rises, in an attempt to stay afloat.

The slump was in line with market expectations and follows on from the 0.2% decline recorded in the second quarter.

The eurozone has dodged recession during its three-year debt crisis, mainly thanks to the strength of its largest single economy, Germany. But even that country is struggling now as demand falls off from the other members of the eurozone, mainly the southern economies of Greece, Spain, Italy and Portugal. Germany's economy grew a muted 0.2% in the third quarter, down from a 0.3% increase in the previous quarter.

Five eurozone countries are in recession - Greece, Spain, Italy, Portugal and Cyprus. Those five are at the front line of Europe's debt crisis and are enacting austerity measures, such as cuts to pensions and tax rises, in an attempt to stay afloat.

Press Association

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