Euro area GDP surprisingly contracts in Q1

By Tuba Ongun

ANKARA (AA) - The euro area's gross domestic product (GDP) unexpectedly fell 0.1% in first quarter of 2023 -- compared to the previous 3-month period, according to the second reading from Eurostat on Thursday.

Eurozone economy was initially estimated to grow 0.1% quarter-on-quarter in January-March.

Market forecast single currency zone economy to stagnate in three months to March.

The GDP in the EU, on the other hand, rose 0.1% compared to the previous quarter.

Eurostat also revised the 2022 fourth quarter data to post a 0.1% decline in the euro area and by 0.2% in the EU.

Poland saw the largest growth among member states with 3.8% -- compared to the previous quarter in January-March, followed by Luxembourg (2.0%) and Portugal (1.6%).

On the contrary, Ireland's economy contracted the most with its GDP going down by 4.6% quarter-on-quarter. It was followed by Lithuania (-2.1%) and the Netherlands (-0.7%).

On an annual basis, both the euro area and EU economies expanded by 1% in the first quarter of 2023.

The annual growth slowed from 1.8% in the euro area and 1.7% in the EU, respectively, in the previous quarter.