The euro zone economy barely grew in the third quarter of this year with GDP expanding by just 0.2 percent from the previous three month period.
That was because even though Germany and France posted solid growth the countries suffering most from the debt crisis performed much worse
And economists said there is a grim outlook through to the end of the year, with that deepening debt crisis hitting investor sentiment and consumer confidence.
“The key point is that this is all history,” Jonathan Loynes, chief European economist at Capital Economics, said. “Forward-looking indicators suggest that the euro-zone economy is likely to drop back into recession in the fourth-quarter and beyond.”
Underlining that view, Germany’s ZEW institute reported that its economic sentiment index fell in November, below economists’ forecasts and sharply down on October’s figure.
It said political and economic problems in Greece and Italy had increased uncertainty about the future.
The German economy grew 0.5 percent in the July-September period; France, the euro zone’s second-biggest economy, expanded by 0.4 percent on the quarter, having contracted 0.1 percent in the previous three months.