Eurozone heading to recession?

The Eurozone economy expanded in the third quarter, however, only slightly. Figures from the Eurostat showed the GDP grew by a mere 0.1%, less than analysts expected and down from a figure recorded in the prior quarter. Weaker-than-expected growth suggests that Mario Draghi was right to cut the interest rate, even though this move was opposed by six members including Jens Weidmann as well as representatives from Denmark and Austria. The mixture of modest growth and weak inflationary pressure is dangerous, as debt burden, both public and private, is already hovering around record highs across much of the Eurozone economies. These burdens are more difficult to bring down if money inflows are barely growing. While high inflation erodes debt, deflation makes it more onerous in real terms. 

Additionally, latest data is sending worrying signs to the global economy, as demand from Europe could fall back once again. The slowdown is likely to weigh on the U.S., China and the U.K., which are Eurozone's three largest trading partners. In a period between 2008 and 2012 almost a half of Eurozone imports came from non-European Union economies, with 8.5% and 12% imported from United States and China, respectively. Though analysts expect a pickup in growth in the last quarter, economic amelioration remains gradual and vulnerable in the face of significant headwinds.