Today: 11 July 2025
8 June 2023
1 min read

Eurozone falls into recession

Europe’s economy has been hit by the economic disruption caused by the Ukraine war, which has pushed up energy and food prices…reports Asian Lite News

The Eurozone has fallen into recession, new data show, as its economy contracted over the winter, according to a media report.

GDP across the Euro area shrank by 0.1 per cent in the first quarter of this year, downgraded from a previous estimate that the economy stagnated, The Guardian reported.

This follows a 0.1 per cent contraction in GDP in the fourth quarter of last year, meaning the 20-nation economy has shrunk for two quarters in a row – the standard definition of a recession, the report said.

It was dragged down by Ireland, where GDP fell by 4.6 per cent in the first quarter of this year – although economists have questioned whether that really reflects the performance of the Irish economy.

Lithuania’s economy shrank by 2.1 per cent, while the Netherlands contracted by 0.7 per cent. Germany, Europe’s largest economy, shrank by 0.3 per cent and is also in recession.

Europe’s economy has been hit by the economic disruption caused by the Ukraine war, which has pushed up energy and food prices.

That had prompted a series of interest rate hikes, as the European Central Bank tried to battle higher inflation, The Guardian reported.

Household final consumption expenditure decreased by 0.3 per cent in the Euro area during the first three months of this year, following a 1 per cent drop in the fourth quarter of 2022.

Government final consumption expenditure (which tracks government spending on goods and services) decreased by 1.6 per cent in the Euro area in January-March, The Guardian reported.

Gross fixed capital formation, which tracks investment, increased by 0.6 per cent in Q1.

But trade deteriorated. Exports decreased by 0.1 per cent in the Euro area while imports dropped by 1.3 per cent, showing that demand was hit by the cost of living squeeze.

ALSO READ: European Commission unveils Western Balkans initiative

Previous Story

New York outranks New Delhi in air pollution

Next Story

WTC Final: Smith, Head and bowlers put Australia in pole position

Latest from -Top News

Masdar powers ahead in UK

€15 billion clean energy alliance powers ahead with East Anglia THREE investment and Baltic Eagle energisation….reports Asian Lite News Masdar, the UAE-based global clean energy powerhouse, and Iberdrola, one of the world’s

Indian Doctor Gets Top Sharjah Award

The award was presented by His Highness Sheikh Abdullah bin Salem bin Sultan Al Qasimi, Deputy Ruler of Sharjah. In a moment of immense pride for the Indian diaspora, renowned paediatrician-turned-entrepreneur Dr.

Peace talks in the desert

President H.H. Sheikh Mohamed reiterated the UAE’s unwavering support for initiatives aimed at fostering sustainable peace, dialogue, and development in the South Caucasus. He also applauded the willingness of the Armenian and

World’s energy thirst to grow: OPEC

UAE sticks to 5 million bpd oil output goal as OPEC launches new World Oil Outlook at Vienna seminar…reports Asian Lite News Haitham Al Ghais, Secretary-General of the Organisation of the Petroleum

Red Sea Warzone

Iran-backed rebels intensify maritime assaults in support of Gaza; US and EU condemn abductions, Israel intercepts missile….reports Asian Lite News The Iran-aligned Houthi rebels have stepped up their maritime offensive in the
Go toTop

Don't Miss

Eurozone Inflation Bounces Back

Yearly inflation in the eurozone is still driven by the

Eurozone GDP up 0.3% in Q2

In the first quarter of 2024, GDP had also grown