The fallout of euro area economy in the second and third quarter in 2008 heralds the first recession since the implementation of the single European currency, in 1999.

In economics, the term recession describes a situation in which the gross domestic product shrinks for at least two consecutive quarters.

In the EU27 which includes 15 countries in the euro area, the economy dropped by 0.2% in the third quarter, after stagnating in April-June interval.

Compared to a year earlier, the economy increased this year by 0.8% in EU27 and by 0.6% in euro area, NewsIn informs.

In the third quarter, household final consumption expenditure increased by 0.1% in the European Union and remained unchanged in the euro area. However, investments fell by 0.8% in the EU27 and by 0.6%in the euro area.

Exports increased by 0.3% in the European Union and by 0.4% in the euro area, while imports increased by 1.3% in the EU27 and by 1.7% in the euro area.

Translated by Camelia Oancea