Irish Central Bank Says Euro Economy Shrank in Second Quarter

The Irish central bank said the euro-region economy probably contracted in the second quarter and the sovereign debt crisis could delay a recovery.

“Economic activity stagnated in the euro area at the turn of the year and available indicators suggest that the economy shrunk further in the second quarter of 2012,” the Dublin-based institution said in its quarterly bulletin published today. “The widespread deterioration in sentiment and the high levels of uncertainty threaten to further delay the gradual recovery forecast for the second half of this year.”