Eurozone in recession

The 15 European Union nations sharing the common currency have sunk into a recession for the first time ever with the GDP falling 0.2 percent in Q2 and Q3, according to data released by the EU on Friday.

"Not only did the third quarter contraction in GDP confirm that the eurozone is now in recession, but latest data and survey evidence indicate that the fourth quarter is likely to see a sharper fall in GDP as the financial crisis bites harder," Howard Archer chief European economist at Global Insight told AFP.

The 27-nation EU has avoided the same fate, even though its economy suffered a 0.2 percent GDP drop in the third quarter, but it recorded zero growth in the second, according to the report.

Germany and Italy have been affected the most in Q3 with Italy falling 0.5 percent.

France, narrowly avoided recession managing a 0.1 percent GDP increase in Q3 and the Spanish economy has also shrunk 0.2 percent compared with June figures.

Poland's figures are not yet available, however, according to EC forecasts Polish economy will also slow down. (AO)

Source: AFP, Puls Biznesu