Eurozone growth halts in fourth quarter 2009

Economic growth in eurozone ground to a halt in the fourth quarter of 2009, according to a new estimate released yesterday by the EU's data agency.

Growth in the 16 eurozone nations stagnated at zero per cent in the final three months of last year, compared to 0.4 per cent in the third quarter, the data agency Eurostat said.

Previously it had forecast 0.1 per cent growth, just months after the bloc slowly emerged from recession.

In comparison with the same quarter of 2008, seasonally-adjusted gross domestic product in the eurozone declined in the fourth quarter of last year by 2.2 per cent.

Exports increased by 1.9 per cent, down from 2.9 per cent in the third quarter, while imports rose 1.3 per cent, also slipping from 2.9 per cent previously.

Investments fell by 1.3 per cent, following a 0.9 per cent drop in the third quarter, although household expenditure was stable, having been down by 0.1 per cent previously.

Eurostat confirmed its growth forecast for the entire 27-nation European Union, putting it at 0.1 per cent in the fourth quarter of 2009.