Euro Zone Economic Growth Sputters, GDP Misses Forecasts

Second quarter economic output in the 17-member European Union fell short of economist expectations, according to new data released by The Eurostat agency.

The agency estimates that the GDP for the euro zone increased 0.2% in the three months ending in June from the previous quarter, which falls short of the consensus estimate of 0.3%.

Economic growth in the Euro region has staggered in recent months, as debt problems and unpopular austerity programs stifled confidence. The 0.2% growth rate compares to 0.8% in the first three months of the year.

Eurostat points to the slowing performance of Germany, noting that the nation grew only 0.1%, from 1.3% in the first three months of the year. The announcement was felt immediately, as stocks on Germany's DAX index slid more than 2% in mid-day trade.

Another nation feeling the effects of slowing output is France. French banks have faced increased scrutiny over Euro debt holdings, with shareholders going on a ride of volatility.

Slowing growth in the Euro zone's largest nations is not likely to be welcome news to markets. Fears have heightened in the past few weeks that parts of the global economy could stagnate or experience another recession.