Eurozone GDP grows just 0.1%

Date: Friday 12 Feb 2010

The eurozone’s economy expanded by just 0.1% in the fourth quarter of 2009 as struggling economies such as Greece held back growth in the 16-member currency zone.

The 27 member European Union, which includes countries that have their own currencies such as the UK, also registered growth of 0.1%.

Both the eurozone and EU emerged from recession in the third quarter of 2009, registering growth of 0.4% and 0.3% respectively.

Greece, which has dominated the headlines lately as it seeks to resolve its debt situation, saw its economy contract by 0.8% in the fourth quarter, compared with 0.5% in the third quarter. Other countries still in recession include, Spain, Latvia and Romania.

Europe’s largest economy Germany surprised forecasters by reporting 0% growth in the fourth quarter, down from 0.7% in the third quarter.

France grew by 0.6% in the fourth quarter, up from 0.2% in the third quarter.

The UK officially emerged from recession in the fourth quarter, growing by just 0.1%.

Italy which returned to growth in the third quarter saw a 0.2% contraction in the fourth quarter.

Howard Archer, chief UK and Eurozone economist at the analyst group IHS Global Insight described the feeble eurozone growth as ‘desperately disappointing.’

‘While it is clear that the Eurozone economy has been finding it very difficult to kick on after exiting recession in the third quarter of 2009, it had been hoped that the fourth quarter growth rate would be similar to the 0.4% quarter-on-quarter expansion achieved in the third quarter,’ he said.

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