Eurozone economy grows just 0.2% in Apr-Jun

The debt-ravaged Eurozone saw a meagre economic growth of 0.2% in the three months to June amid sluggish recovery in Germany and France.

The data released by European Union's statistical agency Eurostat today showed that the Eurozone witnessed an economic growth of 0.2% in the April-June quarter, against 0.8% in the first three months of 2011.

The Eurozone, a grouping of 17 nations that share the common currency euro, has been grappling with severe debt turmoil.

"GDP increased by 0.2% in both the euro area and the European Union during the second quarter of 2011...," Eurostat said in a statement.

European economic heavyweights Germany and France saw slow growth in the June quarter. While Germany's GDP rose by just 0.1%, French economy stagnated in the second quarter with zero growth.

The euro area was expected to see at least 0.3% growth in June quarter. Slow expansion could also force the European Central Bank (ECB) to revise its hawkish monetary stance to bolster economic activities in the Eurozone.

In the June quarter, Spanish economy rose 0.2% while Italy's GDP grew 0.3%.

Apart from European debt crisis, the global financial system is also battling turbulent economic conditions in the world's largest economy the US.

Rating agency S&P recently stripped the US of its coveted 'AAA' rating, a move that created mayhem in global financial markets.