Euro Economy Shrinks in 2Q
Aug 15, 2008
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The euro-zone economy shrank 0.2% in the second quarter, EU statistics showed. Output in the 15 economies that share the euro currency contracted by 0.2% in the April to June period from the first quarter, expanding just 1.5% from the same period a year ago, the EU statistical agency Eurostat said.

Germany, the region's largest economy, shrank 0.5% in April-June from the previous quarter with France and Italy both down 0.3%. German growth dropped for the first time in nearly four years.

Separately, Eurostat said that July inflation was still high but better than anticipated, posting a figure of 4%— the same as June — that it revised downward from a record high of 4.1%. The broader 27-nation European Union also saw growth fall by 0.1% from the previous quarter, up just 1.7% from a year ago.

Only one EU country is now officially in recession: Estonia. The economy shrank 0.9% in the second quarter and 0.5% in the first.

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