2023.06.0809:47:00UTC+00Eurozone Economy Slips Into Recession

The euro area economy slipped into a recession in the first quarter, revised data from Eurostat showed on Thursday.

Gross domestic product shrank 0.1 percent sequentially after posting a similar fall in the fourth quarter. The first quarter GDP figure was revised down from the 0.1 percent expansion estimated initially.

Two consecutive quarters of negative growth in GDP is considered as a recession.

On a yearly basis, economic growth eased to revised 1.0 percent from 1.8 percent in the preceding period. The expenditure-side breakdown showed that household consumption dropped at a slower pace of 0.3 percent on quarter after easing 1.0 percent in the fourth quarter. Meanwhile, government spending declined 1.6 percent, in contrast to the 0.8 percent rise a quarter ago.

Gross fixed capital formation gained 0.6 percent, reversing the 3.5 percent drop.

Exports eased at a pace of 0.1 percent after falling 0.2 percent. At the same time, the decline in imports slowed to 1.3 percent from 2.5 percent.