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Eurozone economy grows 0.2% in July-Sept

The eurozone economy expanded by 0.2 per cent in the three months to September, even as severe debt turmoil threatens to derail the fragile recovery of the 17-nation bloc.

twitter-logo PTI   New Delhi     Last Updated: December 2, 2011  | 16:25 IST

The eurozone economy expanded by 0.2 per cent in the three months to September, even as severe debt turmoil threatens to derail the fragile recovery of the 17-nation bloc.

The grouping, which shares the common currency euro, is shadowed by acute sovereign debt crisis in Greece, which even poses threat to the very existence to the nearly a decade-old currency union.

Boosted by good economic progress in Germany and France - the region's major economies - the eurozone GDP grew 0.2 per cent in 2011 September quarter, according to the data from Eurostat, the statistical agency of the European Union.

However, recent trends including the disappointing eurozone industrial production data for September point towards economic slowdown.
The September quarter GDP expansion is same as that witnessed in the three months to June.

"Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.4 per cent in both zones (eurozone and 27-nation European Union) in the third quarter of 2011," Eurostat said in a statement.

German economy expanded 0.5 per cent in the 2011 third quarter as compared to 0.3 per cent in previous three months. Coming back to growth path, French GDP rose 0.4 per cent in 2011 September quarter. The economy had contracted 0.1 per cent in three months ended June.

Industrial production in the eurozone slumped by 2 per cent in September as compared to 1.4 per cent expansion in August this year. The prolonged European debt crisis, with its epicentre in Greece, has sparked concerns of hurting the slow global economic recovery. In recent times, the financial position of Italy has also worsened.


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