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THE EUROZONE SUNK further into recession in the last three months of 2012 as the debt crisis continued to exact a heavy price according to new data released today.
The eurozone economy shrank 0.6 per cent in the fourth quarter of 2012 compared with the third quarter when it contracted 0.1 per cent, the Eurostat data agency said, confirming initial estimates given in February.
For the full 27-member European Union, the economy was 0.5 per cent smaller in the fourth quarter after a marginal gain of 0.1 per cent in the third, Eurostat said.
A recession is counted as two consecutive quarterly economic contractions. Compared with fourth quarter 2011, the eurozone economy was down 0.9 per cent and the EU bloc of 27 off 0.6 per cent.
Among the major economies, European powerhouse Germany shrank 0.6 per cent in the fourth quarter after a gain of 0.2 percent in the third and France slipped 0.3 per cent after growth of 0.1 per cent.
There was no data supplied for Ireland which will not confirm its fourth quarter figures until the end of this month.
Non-euro Britain lost 0.3 per cent after sharp growth of 1.0 percent in the third quarter, boosted by the London Olympics.
Among the fourth quarter best performers were Estonia, which grew 0.9 percent and Lithuania, up 0.7 percent, while bailed-out Portugal was the weakest, with its economy shrinking 1.8 percent.
Eurostat said that for 2012 as a whole, the eurozone economy contracted 0.6 percent and the EU 0.3 percent.
Data so far for 2013 suggests the European economy is stabilising after a very bad 2012 but the outlook remains weak and uncertain.
- additional reporting from Hugh O’Connell
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That old Austerity is working a treat!
Thats the thing I think its doing what they want it to do, Creating a new poor class happy to work for a bowl of rice.
Austerity……does exactly what i says on the tin!
The euro is on the verge of collapsing and the sooner we leave the eurozone the better!
Yeap, weeks from collapse, weeks I tell ya!
Where did I hear that before…?
It will be a long time, that is if it collapses. It will be slow decline for much of the continent for years to come.
The death of European power was not as a result of war but the creation of a flawed and mismatched currency.
If we leave who’ll bail Europe out?
The leaders must be so proud of themselves, I mean AUSTERITY IS WORKING, why don’t they read the figures they’re always banging on about. Total collapse around the corner.
They don’t care. They really don’t!
Goldman Sachs is paid. State assets are being stripped to fund the same and the EU political class is sitting pretty.
who cares anymore. The people have been sold out.
Devaluing the EURO! I don’t hear Dragi coming out to protect this one… another spin on the import export trading in EU countries!
Still the Rich get Richer and the Poor get Poorer – but I suspect that is what Austerity is supposed to do . Why bother with jobs / manufacturingetc – when there is much more money to be made from Financial Fraud – and the great thing is – one does not go to jail in EU – unlike Afgahistan . One may get a tap on wrist – a fine – but with smart accounting – the taxpayer pays for that too .
Tip for Afgan bankers – come to Ireland . Do your Fraud here – there is no chance u will end up in jail .
Scrap the Euro bring back the PUNT
*random paranoid post, prophesying our doom and saying its all a conspiracy against us*
Trouble for Merkel with her plans for re election if austerity bandwagon falters as euro allows Germany to export it’s products between 30-40% than the old German DMark.
have your say