The euro zone consisting of 17 nations falls back into double dip recession after recession in 2009 with economic contraction for two consecutive quarters as Germany and France were unable to avert the same. The euro zone economy was contracted by 0.1% in the third quarter of the current year 2012 following 0.2% contraction in the previous second quarter. Economic contraction for two consecutive quarters is technically termed as Recession.
Most of the euro zone major economies like Italy, Spain, Portugal are already into deep recession with contraction in economic activity for the last four quarters. Economies of Italy, Spain, Netherlands, Portugal and Greece were contracted by 0.2%, 0.3%, 1.1%, 0.8% and 7.2% in the third quarter which is a big concern for the entire region. Though two biggest economies of the euro zone, France and Germany has posted GDP growth of 0.2% in the third quarter, it could not help the entire zone to fall back into double dip recession. Greece is into recession since 2008 as the Greek economy continues to contract. This will only worsen the current job market scenario of the entire region.
Euro zone is the biggest export market for Germany, China and India. Another recession will definitely hurt the export as well economies of these countries as well.