Eurozone emerges from recession, UK still in coma

The 16-nation eurozone led by strong growth from Germany in the third quarter, has emerged out of recession, leaving Britain, the patient, still in coma.

The eurozone, made of 16 countries that use the euro, reported yesterday that gross domestic product (GDP) grew by 0.4 per cent in the third quarter, while the 27-nation European Union, reported growth of 0.2 per cent.

With Europe witnessing the worst recession since World War II, Eurostat, the statistical office of the European Communities said that the economy of the eurozone had declined 0.2 per cent in the second quarter after collapsing to a record 2.5 per cent in the first quarter.

Germany, the zone's biggest economy, led the way as its economy grew by 0.7 per cent. France by 0.3 per cent and the tiny country of Lithuania by 6 per cent, leaving the UK, facing its longest downturn in history, in a coma, as it shrank by 0.4 per cent

Economist were however not impressed with the rate of growth of Europe's two largest economies as they had expected that Germany's GDP would be about 0.8 per cent in the third quarter, and France 0.6 per cent.

Nevertheless, the eurozone's performance in third quarter was exceptionally good considering that it posted negative growth in the last six quarters and also ends the worst recession that Europe has witnessed since World War II.