The eurozone and the EU 27 economies contracted by 0.3 percent during the fourth quarter last year, according to estimates published by Eurostat, the statistical office of the European Union. For comparison, GDP grew by 0.7 percent quarter-on-quarter in the US during the same quarter, while in Japan, it declined by 0.6 percent.

The eurozone managed to post overall growth in its economy in 2011, reaching a GDP increase of 1.5 percent, while the EU 27 area, of 1.6 percent, according to Eurostat. With a 2.5 percent GDP growth, Romania, which is not part of the eurozone, was above the EU average in 2011. The country too saw a decline in growth in the fourth quarter of the year.

The only economies which scored better during the fourth quarter lats year were Hungary, with a quarter-on-quarter growth of 0.3 percent, Bulgaria, with 0.4 percent, France, with 0.2 percent, Slovakia, with 0.9 percent. Germany's economy also contracted in the fourth quarter of the year, by 0.2 percent. Full Eurostat report here. 

Moody’s recently announced actions on nine EU states, which were downgraded. Moody’s put Britain, the only non-eurozone country affected, on a negative outlook as well, meaning the country could lose its triple A rating in the coming months. Italy, Portugal, Malta, Slovakia and Slovenia were all downgraded one notch, while Moody’s added to Spain’s woes with a two notch cut to A3.

editor@romania-insider.com

(photo source: Sxc.hu)