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Eurostat confirms recession in eurozone
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First estimates from the European Union's statistics office Eurostat on Thursday confirmed that the eurozone's economy had entered recession as it contracted again in the third quarter.

Eurostat said that economy in the 15-nation euro area contracted 0.2 percent in the third quarter, after another 0.2 percent shrink in the previous quarter. Two quarters of contraction means technical recession.

Compared with the third quarter of 2007, seasonally adjusted GDP rose by 0.6 percent in the euro area.

In the 27-nation EU, growth also shrank 0.2 percent in the third quarter over the previous three months, when the GDP growth remained unchanged.

Eurostat said that exports in the eurozone rose by 0.4 percent during the third quarter following a 0.1-percent fall in the second quarter. Imports rose by 1.7 percent on a month-to-month basis.

Tight financing is the driving force behind the eurozone's recession.

The dire economic situation forced the European Central Bank to cut its benchmark rate by 75 basis points on Thursday to 2.50 percent.

(Xinhua News Agency December 5, 2008)

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