15 Aug 2008

Recession feared in eurozone

11:20 am on 15 August 2008

Europe's biggest economies contracted in the June quarter, raising fears the euro zone is sliding towards recession.

Germany led the way, shrinking 0.5%, while France and Italy, declined 0.3%, hit by a slowdown in exports and consumer spending.

Overall, the 15 economies of the eurozone contracted 0.2%.

Bank of America senior economist for the eurozone, Gilles Moec, says it's likely Europe is already in recession.