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| Version 1 | Version 2 |
|---|---|
| Europe's major economies contract | Europe's major economies contract |
| (10 minutes later) | |
| The three biggest euro economies contracted between April and June, heightening fears the eurozone is sliding towards recession. | The three biggest euro economies contracted between April and June, heightening fears the eurozone is sliding towards recession. |
| The German economy, Europe's largest, shrank by 0.5% in the second quarter compared with the first three months of the year, the first decline since 2004. | The German economy, Europe's largest, shrank by 0.5% in the second quarter compared with the first three months of the year, the first decline since 2004. |
| And in both France and Italy GDP shrank by 0.3% in the second quarter. | And in both France and Italy GDP shrank by 0.3% in the second quarter. |
| The downturn was largely driven by a decline in exports and a slowdown in consumer spending. | The downturn was largely driven by a decline in exports and a slowdown in consumer spending. |
| SECOND QUARTER GDP GROWTH Germany: -0.5%France: -0.3%Italy: -0.3%Spain: +0.1%Austria: +0.4%Source: Government statistics | |
| Exporters have been affected by the strength of the euro, which makes their products more expensive overseas, and a more general slowdown in global demand. | Exporters have been affected by the strength of the euro, which makes their products more expensive overseas, and a more general slowdown in global demand. |
| French finance minister Christine Lagarde, said the decline in the French economy in the second quarter "mostly reflects the deterioration of our international context, which particularly weighed on our exports and which is common to all European countries". | French finance minister Christine Lagarde, said the decline in the French economy in the second quarter "mostly reflects the deterioration of our international context, which particularly weighed on our exports and which is common to all European countries". |
| "The fundamentals of the French economy are healthy," she added. | "The fundamentals of the French economy are healthy," she added. |
| Recession worries | Recession worries |
| A German finance minister said its economy could contract again in the next quarter which would mean Germany was officially in recession. | A German finance minister said its economy could contract again in the next quarter which would mean Germany was officially in recession. |
| "At the moment that cannot be ruled out," said deputy economy minister Walther Otremba. | "At the moment that cannot be ruled out," said deputy economy minister Walther Otremba. |
| However, despite the sharp slowdown in the second quarter, he added that the government's forecast for GDP growth of 1.7% this year was still accurate. | However, despite the sharp slowdown in the second quarter, he added that the government's forecast for GDP growth of 1.7% this year was still accurate. |
| Spain was the only one of the major eurozone economies to see its economy expand between April and June. It grew by 0.1% compared with the previous quarter. | Spain was the only one of the major eurozone economies to see its economy expand between April and June. It grew by 0.1% compared with the previous quarter. |
| Economists expect the eurozone economy as a whole to have contracted in the second quarter, when figures are released later. | Economists expect the eurozone economy as a whole to have contracted in the second quarter, when figures are released later. |