Eurozone falls back into recession
The eurozone has returned to recession as the region's debt crisis continues to hurt demand, figures show.
The economy of the 17-nation bloc contracted by 0.1% between July and September, after shrinking 0.2% in the previous three months, Eurostat said.
The eurozone was last in recession in 2009, when the economy contracted for five consecutive quarters.
The news comes a day after millions of workers in Europe held a day of action against austerity measures.
Protests in Spain, Italy and Portugal were marred by violence.
Countries such as Greece and the Republic of Ireland that have been bailed out by international lenders continue to see their economies shrink. Meanwhile larger economies such as Spain have imposed spending cuts in an attempt to avoid having to ask for a bailout.
"This [the fall into recession] was totally expected because of austerity policies combined with world growth slowing down and a dramatic fall in activity in Germany and the Netherlands," said Steen Jakobsen, chief economist at Saxo Bank.
"The last couple of days have created a new momentum for a major change in policy input, because up until this week, social tension was not part of equation. It seems like the tone has shifted dramatically."
Posted by: tipper 2012-11-15