Finland Times

 

Photo AFP-Lehtikuva.

Seasonally adjusted Gross domestic product (GDP) in the eurozone expanded by 0.2 percent in the third quarter of 2014 from the previous quarter, with its two biggest economies German and France both narrowly escaped a new recession, according to flash estimates published by the European Union (EU) statistical office Eurostat on Friday.

     

Meanwhile, the economy in the 28-nation European Union (EU) expanded 0.3 percent from the previous quarter, the statistics office said.

     

Technically, since two consecutive quarters of falling GDP was defined as recession, both Germany and France escaped from a new recession.

     

Figures show that in Europe's powerhouse Germany, the GDP increased by 0.1 percent in the third quarter, following a contraction of 0.1 percent in the second quarter.

     

French economy expanded by 0.3 percent in the period from July to September after shrinking by 0.1 percent in the previous quarter.

     

While the GDP of Italy recorded a 0.1 percent of contraction in the third quarter after a 0.2 percent shrinking in the previous quarter thus the third largest economy in the eurozone was trapped into a new recession.

     

In contrast, most peripheral countries continue to grow at relatively strong rates with Greek economy posting an increase of 0.7 percent quarter-on-quarter, Spain up at 0.5 percent.

     

Analysis said though the overall 0.2 percent increase of GDP in the eurozone was more strongly than expected, the economy of the 18-nation bloc remains sluggish and could need more stimulus.

     

"In such a loose monetary context today's figures are a great disappointment and highlight the need for fiscal expansion to support efforts on the monetary side," said Danae Kyriakopoulou, economist at the Center for Economics and Business Research in Britain.