World Economy Shows New Strain --- European Output Shrinks, U.S. Inflation Jumps; Fresh Worries in Developing Nations
The global economy -- which had long remained resilient despite U.S. weakness -- is now slowing significantly, with Europe offering the latest evidence of trouble.
On Thursday, the European Union's statistics agency said gross domestic product in the euro zone contracted 0.2% in the second quarter, the equivalent of a 0.8% annual rate of decline. It marked the first time since the early 1990s that GDP has fallen overall in the 15 countries that use the euro.
With the European growth report, four of the world's five biggest economies -- the U.S., the euro zone, Japan and the U.K. -- are now flirting with recession.
"Every region of the world except the Middle East and North Africa -- a beneficiary of high oil prices -- will experience a slowdown this year," Global Insight, a Massachusetts forecasting firm, said in a recent report.
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