Eurozone GDP Grows by a Slight 0.1% in the First Quarter of the Year

Eurozone gross domestic product (GDP) grew by 0.1% in the first quarter of 2023, according to Eurostat data. Although this is a slight expansion, it has not allayed concerns about a possible recession in the region. In contrast, the European Union (EU) economy as a whole (including countries that do not use the common currency) increased by 0.3% compared to the previous quarter.

In the fourth quarter of 2022, GDP in the Eurozone recorded no growth (0.0%), while for the EU as a whole, a decline of 0.1% was estimated. Germany, the eurozone’s largest economy, recorded stagnation (0.0%) in the first quarter of this year, and while this is an improvement from the 0.5% decline in the previous quarter, it still fell short of analysts’ expectations.

Spain posted a solid 0.5% advance in the quarter, thanks to a rebound in exports and business investment, while France posted 0.2% growth. Portugal posted growth of 1.6%, but Ireland experienced a sharp decline of 2.7%. Overall, experts believe that growth in the region remains weak and that there is no reason for complacency.