The eurozone has finally been able to avoid a technological recession, which is largely explained by German data. In contrast, Italy, Spain and France showed growth.
Eurozone GDP plunges into technical recession Within the first three months of the current year after finalization Two consecutive quarters of economic contraction according to the latest data from the Eurostat Community Statistics Office, 0.1% in both cases.
Thus, the eurozone could finally avoid a technological recession, and preliminary Eurostat data, thought to be over, showed GDP declining in the first quarter of this year as well. is mainly explained by German data.
An initial version estimated that the eurozone’s main economic engine registered zero growth (0%) between January and March, but the new update sees the German economy contracting by 0.3%, while the world He points out that it will join the economy. It will decrease by 0.5% in the final quarter of 2022.
As a result, the equivalent data for Eurozone GDP fell from a modest expansion of 0.1% calculated in preliminary figures to a decline of 0.1% in Thursday’s update, compared to the 2018 observed over the course of October. A reduction of the same magnitude is added. and December of the previous year.
Asked about the new data at a press conference, the European Commission emphasized: The ‘minor’ winter recession has since been ‘absorbed’ while the economy ‘continues to create jobs’, proving the ‘resilience’ of the European clubs.
Veerle Nuyts, spokesperson for the regional economic executive department, also recalled that the latest economic forecast for Brussels was: We expect 1.1% growth in 2023 based on preliminary Eurostat data and will be revised again “later” once the summer begins.
Meanwhile, economic activity across the European Union registered a 0.1% increase in the first quarter of 2023, avoiding a technical recession after the final quarter of 2022, which declined by 0.2%. %.
Italy stands out in growth
Regarding the behavioral analysis of the four largest economies of the European Union, The largest increase in the first quarter of this year was in Italy (0.6%), followed by Spain (0.5%) and France (0.2%), contrasting with Germany’s rate of decline.
Among the remaining member states, Poland leads the rankings with growth of 3.8%, ahead of Luxembourg (2%), Portugal (1.6%) and Croatia (1.4%). The largest declines were observed in Ireland (-4.6%), Lithuania (-2.1%), the Netherlands (-0.7%) and Estonia (-0.6%).
Examining each component of GDP, we find that between January and March this year, household final consumption fell by 0.3% in both the euro area and 27 countries, while public spending increased by 1.6% in common currency and euro countries. It is shown. 0.9% for the entire block.
Similarly, investment (gross fixed capital formation) increased by 0.6% in the Eurozone and 0.3% in the EU, while exports fell by 0.1% in both regions and imports by 1.3% in both regions.
Source: Biobiochile
