The euro zone economy entered a technical recession in the first three months of 2023 by contracting for the second consecutive quarter in the change in the chain, according to data released this Thursday by Eurostat.
In the first quarter of the year, the Gross Domestic Product (GDP) of the euro area fell by 0.1% year-on-year, the same rate of contraction that it had registered in the last three months of 2022.
According to the European statistical service, in the first three months of this year household final consumption spending fell by 0.3% in the euro area (after -1.0% in the previous quarter) and government spending public services fell by 1.6% (after growing by 0.8% in the previous period).
Exports decreased by 0.1% in euro countries and imports decreased by 1.3% between January and March (-0.2% and -2.5% in the fourth quarter of 2022).
Gross fixed capital formation, for its part, increased by 0.6% in the euro area (after a fall of 3.5%).
The economy of the euro zone had, in the first quarter, a similar growth of 1.0%, a slowdown compared to the 1.8% of the previous one, and maintained the chain decline of 0.1%, according to data released this Thursday by Eurostat.
In the European Union, GDP growth also slowed down to 1.0% year-on-year (1.7% in the first three months of 2022) and accelerated, in the comparative chain, by 0.1%, compared to the decline of the 0.2% registered between the last October and December.
GDP is an indicator to measure economic activity, and the economy enters a technical recession when there is a decline for two consecutive quarters.
Source: TSF
