Disappointing growth figures in the eurozone and Japan driven by weak export numbers have dashed hopes that a global economic recovery would gather pace in the second half of the year.
Growth in the eurozone faltered in the third quarter, expanding by 0.1 per cent following growth of 0.3 per cent in the second quarter. The figures came a week after the European Central Bank cut rates in response to mounting fears over deflation.
“The near-stagnation of the eurozone economy underlines the fragility of the recovery and the growing dangers of a damaging bout of deflation in the region,” said Jonathan Loynes, chief European economist at Capital Economics.
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