Eurozone slips into its longest ever recession

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The eurozone economy has recorded its sixth straight quarter of negative growth, data showed on Wednesday morning. It marks the longest period of recession in the bloc since records began in 1995.

The economy of the 17-nation bloc contracted by 0.2 percent in the January to March period. It had been forecast to shrink by 0.1 percent, after losing 0.6 percent in the last quarter of 2012. Year-on-year, the eurozone economy is today 1 percent smaller than it was in the same period in 2012.

Across the 27-member European Union, GDP was 0.1 percent down. The UK economy however, received some relief with data showing growth of 0.3 percent. GDP in the United States grew by 0.6 percent in the first quarter of 2013, and was up 1.8 percent year-on-year.

Of the individual members’ economies, many – including France – are now in recession. Germany recorded only weak growth of 0.1 percent, less than it had been forecast.

France into recession

France’s economy slipped by 0.2 percent for the second consecutive quarter, meaning it is officially in recession for the second time in four years. The country’s economy minister Pierre Moscovici said this was “not a surprise” and that it was “largely due to the eurozone environment.” French president François Hollande said the situation was “serious” but not as bad as the previous recession in 2008-2009. He also pointed the finger at a fall in demand for French products in Europe.

France’s unemployment rate is expected to continue to rise from its current 10.6 percent. That is still below the eurozone average, which was 11.4 percent last year.

Joining France in recording negative growth in the first quarter of 2013 was Italy, where the economy lost 0.5 percent, its seventh consecutive quarter of loss. The same can be said for Spain, where unemployment is above 25 percent.

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