Eurozone economy stabilising

Eurozone GDP contracted by 0.1% in the second quarter compared with the previous quarter, suggesting that the European economy may be stabilising.

Compared with the second quarter of 2008, the eurozone economy declined by 4.7% illustrating the severity of the financial crisis on the 16 member countries.

Household consumption expenditure provided a positive contribution to the GDP figure, rising by 0.2% over the quarter. The net trade position also improved, with imports falling 2.8% against a 1.1% drop in imports.

In the broader European Union countries, GDP shrank by 0.2% as household consumption remained flat over the quarter.

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