EU and eurozone GDP Falls 0.2% in Second Quarter

EurostatAccording to data released on Monday by the EU statistics office, Eurostat, the economy of the eurozone, and the European Union as a whole, shrank 0.2% in the second quarter compared with the first three months of 2012, when growth was zero in both zones.

In annual terms, GDP in the eurozone fell 0.4% in the second quarter compared to the same period of 2011, and that of the whole of the European Union fell by 0.2%.

The Spanish economy suffered a decline of 0.4% in the second quarter over the first quarter, and 1.0% when comparing the evolution of GDP with the same period last year.

In the second quarter of the year at least eight EU countries were in recession – there is no data available yet for them all – among them some of the largest euro economies such as Italy (with a fall of 0.7%, and 0.8% in the previous period) and Spain, with three consecutive quarters of declines.

The UK is also in recession, since its GDP contracted 0.7% in the reference period, and which now marks three consecutive quarters of negative developments.

Of the rescued countries Greece and Portugal are in recession (no data is available yet for Ireland).

In addition Cyprus, who has called on the eurozone and the International Monetary Fund for a complete rescue, accumulated four negative quarters, registering a fall of 0.8% in their GDP in the second quarter.

Romania, on the other hand, managed to emerge from recession by posting a slight increase of 0.5% between April and June, compared to the declines of 0.1% and 0.2% in the immediately preceding quarters.

Surprisingly, El Mundo reported that Finland’s economy declined by 1.0% between April and June after rising 0.8% in the first quarter. The best result was recorded by Sweden, boosting the European economy with a growth of 1.4%.

Belgium suffered the consequences of the crisis with its economy contracting by 0.6% in the second quarter, after growing 0.2% in the first, while the GDP of France remained stalled, and Germany’s rose by 0.3%.

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