The eurozone has re-entered recession after GDP fell by 0.1 per cent during the third quarter, contributing to a second successive quarter of negative growth.
The European Union’s statistical office Eurostat reports that the eurozone saw its economy contract by 0.1 per cent during the third quarter of 2012, following a contraction of 0.2 per cent during the second quarter.
The wider 27-member European Union avoided recession, as the economy grew by 0.1 per cent, after shrinking by 0.2 per cent during the second quarter.
The Netherlands saw the biggest contraction, as the economy shrunk by 1.1 per cent during the third quarter.
Portugal and Cyprus shrunk by 0.8 per cent and 0.5 per cent, respectively. Baltic states Latvia, Estonia and Lithauana were the strongest performers, as their economies all grew by more than 1 per cent.
Capital Economics senior European economist Jennifer McKeown says: “Q3’s GDP data confirmed that, despite continued growth in Germany and France, the euro-zone as a whole is now officially in recession. We expect the recession to deepen markedly in the coming quarters.”