The recession in the eurozone intensified markedly in the first quarter, dragged down by an almost 4 per cent contraction in the German economy.

Gross domestic product in the 16-country region fell by a much larger-than-expected 2.5 per cent in the period – outpacing the US slowdown – according to official data released on Friday. The contraction deepened what was already the worst recession in continental Europe since the second world war. The final quarter of 2008 had seen a 1.6 per cent fall in GDP.