European Economy Shrinks in Second Quarter
August 14th, 2008Via: AP:
Euro-zone growth braked sharply in the second quarter as major economies Germany, France and Italy shrank, EU statistics showed Thursday, with high fuel and food prices holding back consumer spending.
Growth in the 15 economies that share the euro currency contracted by 0.2 percent from the first quarter, expanding just 1.5 percent from the same period a year ago, the EU statistical agency Eurostat said in a first estimate that it may change at a later date.
Germany, the region’s largest economy, shrank 0.5 percent in April-June from the previous quarter with France and Italy both down 0.3 percent.
German growth dropped for the first time in nearly four years. The world’s biggest exporter had so far weathered the economic storm brewing in Europe despite high inflation hitting spending at home and a slowing world economy and a strong euro hurting exports to the U.S.
