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Eurozone sees modest growth in early 2023 after stagnation

BRUSSELS (Reuters) – The euro zone grew only marginally in the first three months of 2022 and was slower than market expectations after stalling late last year, preliminary data showed on Friday. .

Gross domestic product in the euro zone rose 0.1% in the first quarter, below the 0.2% growth expected in a Reuters poll. On a year-over-year basis, growth came in at 1.3%, beating expectations for 1.4%.

compared to zero growth in the last quarter of the current 19 country in the Eurozone and at that time in the Eurozone National quarterly decline of 0.1%.

Among the largest countries in the euro zone, Germany showed no growth after contracting in the last quarter of 2022. The economies of France, Italy and Spain did expand.

High energy costs following Russia’s invasion of Ukraine and higher food prices leading to soaring inflation, weakening confidence and rising interest rates have weighed on the single currency economy.

But the economy has also shown some unexpected resilience, as businesses have adapted more quickly during the COVID- pandemic Change, growth exceeded expectations The situation exceeded policymakers’ expectations.

But even if the group fares better than feared, 2023 growth will be the weakest on record due to a sharp drop in real income and surging interest rates.

The European Commission forecasts that the euro zone will expand by 0.9% this year and 1.5% next year. The EU executive said the bloc would avoid a recession but faced challenges – from inflation and monetary tightening to weak external demand and general uncertainty.

For more details on Eurostat data click:

http://ec.europa. eu/eurostat/news/news-releases

(this story has been corrected to say “1st” quarter instead of “4th” in 2nd paragraph)



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