The euro zone economy shrank quarter-on-quarter in the April-June period for the first time since measurements for the single currency area began in 1995, the European Union's statistics office said today.
Eurostat estimated that the economy of the 15 countries that now share the euro contracted by 0.2 percent against the first quarter and grew 1.5 per cent year-on-year: both figures in line with market expectations.
The fall was driven by the three biggest economies - Germany shrinking 0.5 per cent on a quarterlyt basis and France and Italy both down by 0.3 per cent.
The German figure was better than expected, but the French contraction defied market expectations of a rise in GDP and prompted some economists to revise down their forecasts for overall euro zone GDP to a 0.3 per cent fall from 0.2 per cent.
Smaller euro zone members fared better, Eurostat data showed. Greece expanded by 0.6 per cent, Austria and Portugal 0.4 per cent and Belgium 0.3 per cent.
Reuters