Europe’s Economy Shrinks

Here we go again. The euro-zone economy lagged in the second quarter, with the GDP shrinking by 0.2 percent despite growth by Germany, according to Eurostat. The euro zone isn’t officially in recession yet, but some economists warned a double-dip recession could be ahead if decisive action is not taken on the free-falling euro. Coming out poorly in Tuesday’s reporting was Portugal, with its GDP shrinking 1.2 percent during the second quarter and its unemployment rate jumping to 15 percent. France also had its second straight quarter of zero growth, and Spain’s economy shrank 0.4 percent over the same period.