Euro zone reeling towards recession

The Euro zone is heading for an economic downturn with growth plummeting 0.2% in the second quarter, according to a European commission statement issued in Brussels on Monday.

• In 2009, the European Union economy is expected to stall, the statement warned.
• The meltdown will mark the Euro zone’s first recession since the Euro currency’s inception in 1999.
• The EU commission also forecast further falls of 0.1% in the third and fourth quarters of this year.
• Manufacturing in the zone decreased in October to its lowest level since 1997.
• New orders slumped as both EU consumers and businesses reduced spending due to the financial crisis and fears of a lashing recession.
• As a result of this looming economic downturn, European companies also slashed jobs at the fastest rate since January 2002.