Europe's powerhouses on brink of recession

Figures show the fifteen countries that make up Europe’s single currency area saw GDP fall by 0.2% in the second quarter of 2008. The largest economy in Europe, Germany, saw its economy shrink by 0.5% in the three months to June, while France and Italy saw GDP growth of -0.3% each. The strength of the Euro currency has been blamed, with exporters finding it difficult to sell their goods abroad. The slowdown in consumer spending, prompted by the credit crunch, has also been a major factor. Germany’s Government has warned the economy may contract again in the third quarter of the year...