The latest figures from Eurostat show that the eurozone has returned to recession in the third quarter.
Their figures show contraction of 0.1% between July and September, following a 0.2% contraction in the second quarter.
This represents a return to recession for the first time since 2009, when the overall eurozone economy shrank in size for five consecutive quarters.
The performance of the various eurozone nations has been variable during the third quarter.
Spain contracted by 0.3% and the size of the economy in Portugal shrank by 0.8%. The troubled economy in Greece shrank by 7.2% in the third quarter.
It was not only the struggling PIIGS nations that experienced a difficult third quarter. The size of the Netherlands economy also contracted by 1.1%.
This was partially offset by 0.2% economic growth in France and Germany.
The wider European Union, which includes the likes of the UK and Sweden, managed to avoid recession in the third quarter with overall economic growth of 0.2%.
These latest figures suggest that a mixed picture remains in Europe.
Investors will need to be selective about their exposure to Europe over the next twelve months, as some areas perform relatively well and others struggle to stay afloat.
The performance of companies in Europe is likely to reflect this variable outlook.
Photo credit: Yukun Lin
