The eurozone struck a seven-year low today, sparking concerns of an economic crisis erupting across the European Union.

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Germany’s economy stagnated while both France and Italy contracted during the last quarter. There’s concern that the danger of coronavirus can deliver a critical blow to the eurozone this year, dragging Europe into a recession.

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At just 0.1 per cent, the eurozone and the EU have both posted their weakest growth since ancient 2013, which is as soon as the debt meltdown lacked a European downturn.

Europe’s largest markets appeared to drag down the whole bloc, with Germany’s result far below expectations and down from an upwardly revised 0.2 percent in the third quarter.

He cautioned that”Germany on verge of recession and those numbers are all from earlier coronavirus”.

Economist Carsten Brzeski of ING echoed this issue, claiming the danger of a recession was hanging over Germany.

Germany has been engulfed by a political catastrophe after the politician seen as the successor of Angela Merkel, Annegret Kramp-Karrenbauer, announced on Monday that she’d resign from the CDU chair.

Mrs Merkel had promised she’d stay in place as German chancellor if the CDU leadership is secured by one of her rivals at the summer ballot but this might prove difficult.

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There’s also fear that trade talks with Britain over Brexit could spark a collapse.

Europe is already struggling to handle trade tensions with the US and changes in the auto market.

There had been hope that the eurozone had moved past its slump.

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However, today’s reports were signaled by incredibly weak December industrial production statistics released earlier this week.

A number of economists are concerned that German and eurozone growth could be dragged by the sharp fall in consumer spending and industrial output .

The coronavirus in China’s outbreak could affect manufacturing supply chains, exports and travel.

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