As per the latest data released by European Union's statisticis agency 15 nations union slipped in to recession, first time since its inception in 1999.

This was expected because two biggest EU economies, Germany and Italy are officialy in recession as per the data released by the respective countries last week.

Euro Zone GDP declined by 0.2 percent in the third quarter. European leaders initially thought the current financial crisis would be confined largely to the United States.

Two consecutive quarters of shrinking growth is a widely accepted definition of technical recession.

Now analysts feel that the situation is likely to get worse before it gets better.

The Organization for Economic Cooperation and Development (OECD) forecast that economic output would shrink 1.4% this quarter for the 30 nations that make up its membership and keep contracting until the middle of next year.

In another data released by the government, Honk Kong also fell into recession as its GDP contracted in the last quarter.