Eurozone slips into recession, shrunk by 0.1% for second consecutive quarter

The Eurozone entered into a technical recession in the first three months of 2023. Figures from the EU’s statistic agency Eurostat showed that the economy of Eurozone shrunk by 0.1 per cent for a second consecutive quarter. As per the revised official data published on Thursday, gross domestic product (GDP) in the first three months of the year dropped by 0.1 per cent in the euro area compared with the previous quarter. In the fourth quarter of 2022, GDP also decreased by 0.1 per cent, the figures showed. Eurostat has also revised down an earlier forecast that had predicted slight growth, after economic powerhouse Germany last month said it had fallen into recession. Eurostat slashed its earlier prediction of 0.1 per cent growth in the final quarter of 2022 and 0.2 per cent in the first quarter of 2023 to 0.1 per cent contractions in both periods. Two consecutive quarters of shrinking gross domestic product is the threshold for a technical recession. The revision was principally due to a second estimate from Germany’s statistics office showing that the euro zone’s largest economy was in recession in early 2023. This had been expected towards the end of last year as the euro zone wrestled with high energy and food prices and rising interest rates designed to curb inflation, but initial estimates had suggested the region had avoided this. Along with Germany, GDP also declined quarter-on-quarter in Greece, Ireland, Lithuania, Malta and the Netherlands. Eurostat said that household spending stripped 0.1 percentage points, public expenditure 0.3 points and inventory changes 0.4 points from quarterly GDP. Gross fixed capital formation added 0.1 points and while net trade a further 0.7 points as imports declined. With inputs from Reuters Read all the  Latest News,  Trending News,  Cricket News,  Bollywood News, India News and  Entertainment News here. Follow us on  Facebook,  Twitter and  Instagram.