Euro area falls into technical recession in Q1

June 9, 2023

The euro area fell into a technical recession in the first quarter of this year, according to figures from Eurostat.

However, across the EU as a whole, growth remained positive at 0.1% compared to the last three months of last year.

Euro area GDP growth fell by 0.1% in the first three months of this year which followed another decrease of 0.1% in the last quarter of last year.

However, growth in the first three months of this year is still up 1% compared to the same period in 2022.

The fall in Irish GDP in the first quarter of 4.6%, due to a downturn in production in the pharmaceutical sector, was the biggest decrease in the euro area.

GDP is not considered to be a reliable indicator of economic activity in Ireland as it captures a lot of the volatility in the multinational sector.

An alternative indicator, Modified Domestic Demand, rose by 2.7% in the first three months of this year.

However, Eurostat use the GDP measure for collecting EU-wide data.

Other indicators out today show employment growth increasing by 0.6% in the euro area in the first quarter. Employment is also up 1.6% compared to the same period last year.

Compared to pre-Covid pandemic in the fourth quarter of 2019, there are 5 million more people at work across the euro area.

Ireland had the third biggest growth in employment in the euro area in the first quarter of 2023.

Article Source – Euro area falls into technical recession in Q1 – RTE

Copyright and Related Rights Act, 2000

Related News

Irish prices second highest in EU last year

Irish prices second highest in EU last year

Prices paid by Irish consumers were the second highest in the EU last year, according to new official data. Irish prices were 42% higher than the EU average, according to Eurostat, just behind the 43% recorded in Denmark. Lowest price levels were registered in...

Increased labour needed to drive construction output

Increased labour needed to drive construction output

An increase in labour capacity in the construction sector may be needed if the number of houses that work has begun on this year are to be delivered. That is according to Banking and Payments Federation Ireland (BPFI) which says that between January and April, 30,138...