2023-06-08 10:00:57
The eurozone economy shrank by 0.1 percent in the first quarter of this year, on a quarterly basis, and by a similar rate in the last quarter of last year, which means that it is officially in an economic recession, the first since the Corona epidemic.
The final data announced Thursday represented a heavy blow following European officials repeatedly said deflation might be avoided despite tight monetary policies aimed at combating the highest level of inflation since the creation of the eurozone.
In its reading issued today, Eurostat revised its previous preliminary estimates, with a growth of 0.1 percent in the first quarter, to a contraction of the same proportion, and it also revised the reading of the last quarter of last year from zero growth, to a contraction of 0.1 percent.
This is the first time that the economy in the eurozone has contracted for six months since Corona led to negative growth in the first half of 2020.
The recession that the eurozone suffered from this winter comes in light of the pressures of rising energy prices as a result of the Russian-Ukrainian crisis.
Eurostat mentioned that the weakness of the economy in the eurozone in the first quarter was due to weak spending by governments and households.
According to Bloomberg, the region is likely to return to growth during the current quarter, and the European Commission has strengthened its forecasts for the region last month, as it currently expects GDP to grow by 1.1 percent in 2023 and 1.6 percent in 2024.
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