Breaking News Bar
updated: 11/15/2012 7:16 AM

Eurozone back in recession in Q3

hello
Success - Article sent! close
 
Associated Press

BRUSSELS -- The 17 countries that use the euro fell back into recession for the first time in three years as the impact of the region's sprawling debt crisis began to be felt in the region's stronger economies.

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

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The slump was in line with market expectations and follows on from the 0.2 percent decline recorded in the second quarter. As a result, the eurozone is officially in recession, commonly defined as two straight quarters of falling output.

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 percent in the third quarter, down from a 0.3 percent 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 wider EU, which includes non-euro countries, avoided the same fate. It saw output rise 0.1 percent during the quarter, largely on the back of an Olympics-related boost in Britain.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.