The eurozone economy expanded only slightly in the first quarter of the year, after stagnating at the end of last year, preliminary data released by Eurostat showed on Friday, Politico reports.
According to the release, seasonally adjusted GDP grew by 0.1%, disappointing analysts’ expectations for 0.2% growth. Compared to a year earlier, the economy expanded by 1.3%.
In the wider EU, economic activity grew by 0.3% on the quarter and 1.3% on the year.
Among the largest member countries for which data are available, Portugal (+1.6%) recorded the highest increase compared to the previous quarter, followed by Spain, Italy and Latvia (all +0.5%). Declines were recorded in Ireland (-2.7%) as well as in Austria (-0.3%).
The year-on-year growth rates were positive for all countries except Germany, which contracted by 0.1%.
According to Oxford Economics economist Rory Fennessy, there is no reason to tighten the seatbelts as growth is set to remain slow. “We don’t expect growth to pick up meaningfully over the course of 2023,” he said after the release of the data. “The robust start to 2023 for industry will likely be short lived, while elevated inflation and tightening financial conditions will keep a lid on growth this year.”