Stocks plunge as growth slows

European stocks dropped to their lowest levels for three months on the back of slower than anticipated growth in the eurozone economy and fresh fears of a Greek default.

The eurozone economy grew by just 1.4% in 2011, below initial expectations, and slow enough to qualify the region for what Europe called a “mild recession”.

Eurostat had anticipated growth of 1.5% last year, following on from a 1.9% rise in 2010.