Eurozone, a grouping of 17 nations that share the common currency euro, recorded zero growth in the first three months of this year whereas the region's GDP shrunk 0.3 per cent in 2011 December quarter, official data released today showed.
Two straight quarters of economic contraction is described as economic recession.
The better-than-expected reading of overall eurozone economy comes against the backdrop of rising fears that Greece -- grappling with political as well as economic crisis -- could exit the currency union.
Latest figures from Eurostat, the official statistical agency of the European Union, showed that German GDP expanded 0.5 per cent in the 2012 March quarter. Germany came back to growth path after contracting 0.2 per cent in the last three months of 2011.
However, France registered zero quarterly growth compared to 0.1 per cent economic expansion in 2011 December quarter.
Italian economy continued to perform badly, shrinking 0.8 per cent in the three months ended March. Spanish GDP contracted 0.3 per cent during the same period.
Germany's showing has helped eurozone to at least technically escape recession even though the region's overall health continues to pose threat to global financial system.
Economic growth in the 27-nation European Union (EU) was zero in the March quarter.
The growth figures came on a day when socialist Francois Hollande took over as French President, who does not believe in harsh austerity measures to revive Europe.
The developments in Greek politics -- where parties are still bickering over government formation -- and approach of the new French leader, are keenly watched globally to understand the way forward for Europe.
