By CountingPips.com
The Eurozone saw a further contraction of its economy in the second quarter of this year according to a final estimate by Eurostat released today. The 16-nation eurozone gross domestic product declined by 0.2 percent in the April to June quarter of 2009 following a GDP contraction of 2.5 percent in the first quarter. The contraction in GDP surpassed the earlier preliminary 
release that had put the decline at 0.1 percent for the second quarter. Market forecasts were also looking for a 0.1 percent delcine for the quarter. The Eurozone has now had five straight quarters of GDP decline and is in the first recession on record for the euro area.
On an annual basis, the eurozone economy declined by 4.8 percent over last year’s second quarter following the 1st quarter’s annual contraction of 4.9 percent. Economic forecasts were looking for an annual decrease of 4.7 percent.
Household consumption bounced back in the second quarter with an increase of 0.1 percent after decline by 0.5 percent for two quarters in a row while government spending also rose in the second quarter to 0.7 percent from a 0.6 percent in the first quarter. Exports registered a 1.5 percent decline in the second quarter after a 9.2 percent fall in the first quarter while imports fell by 2.9 percent in the second quarter compared with a 7.9 percent decrease in the first quarter.
Germany, the eurozone’s largest economy, emerged out of recession in the second quarter with a GDP gain of 0.3 percent following a GDP decline of 3.5 percent in the first quarter. France, the eurozone’s 2nd largest economy, also came out of recession as their economy grew in the second quarter by 0.3 percent after a decline of 1.4 percent in the first quarter. Other EU16 countries showing a positive GDP in the quarter were Greece, Poland, Portugal, Slovenia and Slovakia.
