Recession avoided but ‘austerity not going away’

Germany pulled the eurozone’s economy back from the brink of recession at the start of 2012 but stagnation in France and contraction in southern Europe underlined sharply differing fortunes in the 17-nation bloc.

Overall gross domestic product was unchanged in the first quarter following a dip at the end of last year, data showed, meaning that the eurozone missed slipping officially into recession by the narrowest possible margin.

But a surprisingly strong showing from Germany, whose exporters are helping it to cope with the eurozone crisis, flattered dismal performances in most major economies.