Europe is in a recession.
According to new data from EUROSTAT, the eurozone economy unexpectedly contracted 0.1 percent in the first quarter.
In the fourth quarter, the eurozone economy also fell 0.1 percent.
This means that the bloc slipped into a technical recession.
More from Trading Economics:
“In Q1 2023, household expenditure decreased 0.3% (vs -1% in Q4 2022) as high inflation and borrowing costs weighed. Also, public spending declined by 1.6% (vs +0.8%), as governments roll back stimulus that were meant to partly offset the impact of rising energy costs. On the other hand, gross fixed capital formation rebounded (+0.6% vs -3.5%). Also, exports decreased by 0.1% (vs -0.2%) and imports fell 1.3% (vs -2.5%). Among the bloc’s biggest economies, the GDP contracted in Germany (-0.3%) and the Netherlands (-0.7%) while the expansion was recorded for France (0.2%), Italy (0.6%), and Spain (0.5%).”
The latest data come after Germany also entered a recession this year.
Interestingly enough, European Central Bank President Christine Lagarde said in February that she does not expect any eurozone country to be in a recession this year.
In 2022, Lagarde noted that a recession is not the baseline scenario for the eurozone economy.
Ouch.
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