Daily Management Review

Reuters: Eurozone avoids technical recession


The euro area's gross domestic product (GDP) dynamics are still positive. According to Reuters, which used data from Eurostat, the figure had increased by 0.1 percent from the previous quarter (up 1.9 percent annually) by the end of 2022.

Sanziana Perju / ECB
Sanziana Perju / ECB
The information matched statisticians' early prediction from January 31. As a result, the Eurozone escaped the technical recession predicted previously, even though GDP growth slowed down in the final three months of 2022. The biggest economies in Eastern Europe went through the worst recession; according to Bloomberg, GDP fell in Poland (-2.4% last quarter), Hungary (-0.4%), and the Czech Republic (-0.3%).

In this instance, the number of persons who are employed overall in the euro area increased over the previous quarter by 0.4%. Eurostat emphasizes that this statistic is greater than what was previously predicted, which suggests that the labor market is stable. Additionally, the single currency bloc's inflation dropped far faster than anticipated to 8.5% (Eurostat data for January).

The European Commission's recent estimate indicates a GDP gain of 0.8%, which shows that growth in the European economy in 2023 may outpace autumn projections.

source: reuters.com, bloomberg.com