Eurozone's GDP revised downwards

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The eurozone economy shrank more than previously estimated in the last three months of 2008, official figures say.

Gross domestic product in the 15-nation area fell 1.6%, not 1.5% as previously thought, said the EU's Eurostat office.

The euro declined against the dollar to $1.3270 from $1.3330 after the figures came out, amid fears the economy could contract even further in 2009.

The drop is the deepest quarterly fall to date and was brought on by a collapse in external trade.

The eurozone now includes 16 nations that use the euro as their national currency, after Slovakia adopted the euro at the beginning of this year. Slovak GDP was not included in the 2008 figures.

"Worryingly, it is far from inconceivable that eurozone GDP contraction was even deeper in the first quarter of 2009, given largely dire data and survey evidence," said Howard Archer, economist at IHS Global Insight.

"This will hopefully have marked the low point in the downturn, although recovery currently still looks some way away, " he said.