German 4th-quarter GDP shrinks 0.2%; France grows (by William L. Watts)

FRANKFURT (MarketWatch) -- German gross domestic product shrank by a seasonally- and calendar-adjusted 0.2% in the fourth quarter of 2011 compared to the previous three months, the federal statistics office, Destatis, reported Wednesday. Compared to the final quarter of 2010, Europe's largest economy grew by 2%. Economists polled by Dow Jones Newswires had forecast German GDP to shrink by 0.3% on a quarterly basis and to expand 1.8% compared to the final quarter of 2010. France's statistics agency, Insee, reported GDP saw quarterly growth of 0.2% and expanded 1.7% compared to the final quarter of 2010. Economists had expected French GDP to shrink 0.1% on a quarterly basis. Euro-zone fourth-quarter GDP data is set for release at 5 a.m. Eastern.

Euro-zone GDP contracts 0.3% in fourth quarter (by William L. Watts)

FRANKFURT (MarketWatch) -- Gross domestic product across the 17-nation euro zone contracted by 0.3% in the final three months of 2011 compared to the previous quarter, the European Union statistics agency Eurostat said in a preliminary estimate released Wednesday. Economists had forecast a 0.4% contraction. GDP in the euro zone grew by 0.1% in the third quarter. Compared to the final quarter of 2010, the economy grew 0.7%. Earlier, national data showed that Germany, Europe's largest economy, shrank by a smaller-than-expected 0.2% in the fourth quarter, while France unexpectedly grew. Italy saw its GDP contract for a second consecutive quarter, meeting a widely-used definition of recession.

Italy falls back into recession as GDP shrinks (by William L. Watts)

FRANKFURT (MarketWatch) -- The Italian economy contracted for a second consecutive quarter in the final three months of 2011, meeting a widely-used definition of recession, official data showed Wednesday. The country's national statistics office, Istat, said preliminary gross domestic product shrank 0.7% in the fourth quarter compared to the previous three months. Third-quarter GDP shrank by 0.2%. Compared to the final quarter of 2010, Europe's third-largest economy contracted by 0.5%. Economists surveyed by Dow Jones Newswires had forecast a 0.4% quarterly contraction. Earlier, national data showed German GDP shrank less than expected in the fourth quarter, while French GDP unexpectedly grew. Preliminary euro-zone GDP data is set for release at 5 a.m. Eastern.