Eurozone slides into recession

Eurozone slides into recession

The second quarter of the current year had already seen a decline of 0.2 percent. Economists speak of a recession when economic growth is negative for at least two quarters in a row. The last time the eurozone had been in recession was after the global banking crisis began in 2008. At that time, economic output fell for five consecutive quarters until the summer of 2009.

The current recession is being blamed on the poor economic situation in the crisis-hit countries of southern europe. In spain, the third-quarter decline was 0.3 percent, in portugal 0.8 percent. Italy’s economic output also fell by 0.2 percent. Germany, europe’s largest economy, posted a positive performance of 0.2 percent.

Third-quarter figures worse than expected. EU commission had expected only stagnation for the third quarter. Experts are again forecasting a downturn for the winter and predict an economic slump of 0.4 percent for 2012 as a whole. In the EU as a whole, the situation is somewhat better. The 27 EU countries recorded mini-growth of 0.1 percent in the third quarter.

Leave a comment