The euro-area economy succumbed to a recession for the second time in four years as governments imposed tougher budget cuts and leaders struggled to contain the debt crisis that broke out in October 2009.
Gross domestic product in the 17-nation bloc slipped 0.1 percent in the third quarter after a 0.2 percent decline in the previous three months, the European Union’s statistics office in Luxembourg said today. The result matched the median forecast in a Bloomberg News survey of 44 economists, as unexpected strength in Germany and France was outweighed by contractions elsewhere.
Europe’s economic gloom contrasts with signs of green shoots in the U.S., where housing demand is strengthening and companies are hiring, and China, where factory output and retail sales are accelerating. The two countries are responsible for a third of the world economy.