Eurozone set for recession

The eurozone is on the edge of recession after economic growth fell by 0.2% in the second quarter of 2008.

The European Commission predicted further falls of 0.1% in the third and fourth quarters of this year, which would take the zone into its first recession since the single currency was introduced in 1999.

Overall growth was likely to be 0.1% for 2009, it added, with a rate of 0.9% in 2010.

Manufacturing in the eurozone is now at its lowest level since 1997, according to the purchasing manager's index compiled by Markit Economics, with October the fifth month in a row that has seen a contraction in the sector.