The jury's still out as to whether continental Europe will be partly immune to the financial woes being experienced in the US, but the latest data isn't promising. Figures released today showed that the economies in the fifteen countries that use the euro - known as the eurozone - contracted by .2 percent between April and June. The news is likely to accelerate the steep drop that the euro has been experiencing on currency exchange markets over the past few weeks.
The data is heightening concerns that the eurozone is going to follow the US into a recession. Reacting to the report, a German finance minister said Germany's economy could contract again in the next quarter. That would officially mean Germany is in a recession. And given that Germany is the main driver of growth in the eurozone and the dominating economy, that would likely mean recession for the whole zone.