Eurozone economy shrinks 0.3% in fourth quarter

After growth of 0.1 percent in the third quarter, the economy contracted by 0.3 percent in the fourth, Eurostat data agency said in a clear sign the debt-stricken eurozone was heading towards recession in 2012.

Recession is defined as two consecutive quarters of economic contraction.

It was the first time that the eurozone economy contracted since the second quarter of 2009.

The figures, however, are better than expected after analysts polled by Dow Jones Newswires forecast a fourth quarter contraction of 0.4 percent and growth of just 0.7 percent overall in 2011.

The GDP of the wider, 27-nation European Union, which includes Britain, also contracted by 0.3 percent in the fourth quarter but grew by 1.6 percent overall in 2011.

On a 12-month comparison, the eurozone\'s seasonally adjusted gross domestic product increased by 0.7 percent in the fourth quarter compared to the same period in 2010.

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