The Eurozone economy contracted in the second quarter, increasing fears that "Recession 2013" for the U.S. is a step closer to reality.
From April to June, gross domestic product (GDP) in the ailing Eurozone region withered 0.2%.
That compares to the prior three months where there was no growth as the area was besieged by the ailing economies of Greece, Italy, Spain and Finland, which all sharply contracted.
"[The contraction] confirmed that the Eurozone is to all intents and purposes in recession, even if it has avoided the technical definition of two successive quarters of negative quarter-on-quarter GDP," Howard Archer, an economist at IHS Global Insight wrote in a note to clients.
The only thing preventing the Eurozone from contracting more in the second quarter and falling back into its second recession in three years was a buoyant economic performance from Germany.
Healthy investment and domestic consumption boosted the German economy and helped it grow 0.3% in the second quarter, topping expectations of 0.1%. The Netherlands also beat expectations, reporting growth of 0.2% for the quarter.
Meanwhile, French GDP didn't budge, sidestepping a highly anticipated contraction.