UK lags behind as euro zone becomes latest economy to exit recession

Official figures have today revealed that the euro zone economy experienced positive growth of 0.4% in the third quarter, and therefore exiting from recession.

The 16 nations that use the euro was boosted by strong growth in Germany, and joins other major economies, such as the US and Japan, which have also exited recession.

However, the UK’s economy contracted during the third quarter by 0.4% and is still in recession. It is the first time the UK had endured six consecutive quarters without growth - the first time since the ONS began gathering the data in 1955.

Meanwhile, returning to the euro zone, the German and French economies both grew for a second consecutive quarter, confirming that the euro zone’s two largest economies had ’officially’ exited recession.

However, both economies had expanded by less than expected, sparking fears of whether a recovery can be sustained.

Meanwhile, data today also confirms that Italy, Austria and Slovakia have emerged from recession in the third quarter.

However, Spain’s economy contracted in the third quarter, meaning the struggling economy failed to pull out of recession.

The Spanish economy has one of the highest unemployment rates of any European region at 19.3%. The economy has been hit by a severe slump within the construction industry, which has led to a significant amount of job losses.

Spain’s jobless rate is more than double the 9.2% rate for the EU as a whole.

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