Eurozone GDP to shrink?

Analysts believe that the eurozone gross domestic product (GDP) is likely to shrink by around 0.2 per cent from the first quarter when the official figures are published later today (August 14th).

Reuters has polled 55 economists with some of them predicting as much as a 0.7 per cent shrinkage in output.

It has been an eventful three months on the continent with Spain - the fourth largest economy in Europe - having to step in to save Bankia and Greece debating leaving the single currency.

A reduction in GDP would certainly be seen as negative stock market news and increases fears about a double-dip recession across the region, with the first quarter figures being consigned to history as merely a blip.

Of all the constituent members, only Germany - the eurozone's largest economy - is expected to see growth, with experts predicting a 0.2 per cent increase in output.