The eurozone has slipped back into recession for a second time in four years as third quarter gross domestic product shrank by 0.1%, following a second quarter decline of 0.2%.
Eurostat's first estimate of GDP for the three months to September showed the deep recession that has gripped southern Europe is beginning to affect the core of the 17-nation currency area, although its biggest economies Germany and France managed to eke out modest growth.
Germany grew by 0.2% in the third quarter, down from 0.3% in the second quarter, confirming data that had pointed to a slowdown in Europe's leading economy. France delivered a positive surprise, posting growth of 0.2% compared with expectations for a flat performance.
The European Union avoided recession in the quarter, registering growth of 0.1%, after a decline of 0.2% the previous quarter, helped by a stronger-than-expected performance in the U.K. thanks to one-off factors such as the London Olympics.
The Bank of England warned Wednesday that the U.K. economy may contract in the fourth quarter due to the effects of the eurozone crisis.
Source CNN Money