Eurozone mired in recession, numbers show

LUXEMBOURG, Feb. 13 (UPI) -- Economies in the eurozone declined 1.2 percent in 2008, pulled down by 1.5 percent fourth-quarter contraction, Eurostat said.

The global slowdown in the fourth quarter hit Germany with a 2.1 percent decline, France with a 1.2 slide and the Netherlands with a 0.9 percent contraction. The Austrian economy shrank 0.2 percent for its first contraction in more than seven years, the British Broadcasting Corp. reported Friday.

In Portugal, the economy shrank 2 percent compared to the third quarter with the entire year's output down 2.1 percent compared to 2007.

"These are huge contractions in Europe, the largest in living memory in most cases," said BNP Paribas economist Ken Wattret.

The Germany economy, the largest in the 16-member eurozone, fell harder than the 1.8 percent economists had predicted. The government also forecasts 2.25 percent contraction for 2009.

French Economic Minister Christine Lagarde also predicted a "difficult year" ahead.

"This number makes it plain that we're in a very serious recession -- the most serious since World War II," said Goldman Sachs economist Dirk Schumacher.

"It's no surprise that exports and investment have tumbled," he said.