This article was last updated on June 8, 2023
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The economy of the euro countries has officially entered a recession. Figures from the EU statistics agency Eurostat show that the economy of the euro countries has contracted for the second quarter in a row.
The Lightest Recession Possible
It is currently the lightest recession possible. According to the official definition, an economy is in recession if the size of the economy falls for two quarters in a row. In the eurozone, the economy contracted by at least 0.1 percent in the fourth quarter and by a further 0.1 percent in the first quarter.
Factors Contributing to the Recession
Consumers spent less and government spending also fell. In the Netherlands (-0.7), Germany (-0.3) and Ireland (-4.6), among others, the size of the economy fell in the first quarter. On the other hand, there is growth in Spain (0.5), Italy (0.6) and Portugal (1.6).
New Numbers from Eurostat
Earlier figures from Eurostat assumed minimal growth and a recession seemed out of the question. New numbers out this morning published show that there was a contraction after all. Employment in the eurozone did increase in the past quarter.