By Daniel Hunter

Official data has shown that both the German and French economies have shrunk in the final three months of 2012.

Germany - the eurozone's largest economy - saw its gross domestic product (GDP) shrink by 0.6% as exports declined.

That was the deepest contraction since the first three months of 2009 - the height of the financial crisis.

The French economy shrank by 0.3% in the fourth quarter. Both numbers were worse than forecast.

Some analysts have predicted France is heading for a recession - usually defined as two consecutive quarters of contraction.

However, France's central bank recently forecast that the economy would expand in the first three months of 2013.

Join us on
Follow @freshbusiness