Eurozone Braces for GDP Slump

18 August 2008

FRANKFURT: Gloom across the Eurozone deepened as the German economic powerhouse unveiled negative GDP growth of minus 0.5% in the last quarter, closely followed by France's equally dispiriting minus 0.3%.

To the surprise of none, the Eurozone's collective GDP was down 0.2%, according to the European Commission.

Analysts believe growth is unlikely to return to an upward trajectory until the European Central Bank is in a position to reduce interest rates from the current 4.25% to a level closer to its target of two per cent.

Data sourced from; additional content by WARC staff