BRUSSELS, Belgium (PNN) - August 14, 2012 - The eurozone edged closer towards its second recession in three years after a resilient economic performance from Germany and France failed to prevent the single currency bloc from contracting in the second quarter.

Gross domestic product in the euro area shrank by 0.2% in the three months to June, compared with the previous three months when there was no growth, as the economies of Greece, Italy, Spain and Finland contracted sharply.

“[The contraction] confirmed that the eurozone is to all intents and purposes in recession, even if it has avoided the technical definition of two successive quarters of negative quarter-on-quarter GDP,” said Howard Archer, chief European at IHS Global Insight.

The eurozone reportedly emerged from recession in the third quarter of 2009 but growth turned negative in the final quarter of 2011. In the first quarter of this year, output remained unchanged - defying fears of a recession. However, after falling into negative territory in the second quarter it is expected to stay negative in the current quarter, resulting in another technical recession.

Greece’s economy has been the worst hit. Its economy shrank at an annualized pace of 6.2% in the second quarter, as Athens struggled to reignite investment and consumption due to strict austerity measures imposed by the EU in exchange for IMF bailouts.

Meanwhile, Italy’s economy contracted by 0.7% quarter on quarter, extending the country’s year-old double-dip recession.

Even though official economic statistics state that the European Union is entering its second recession, all practical indicators point to the existence of an ongoing Second Great Depression in the region.