In the EU as a whole, however, an increase of 0.1% was recorded. Already in the last quarter of 2022, GDP had fallen by 0.1% in the eurozone and by 0.2% in the EU. However, compared to the first quarter of 2022, growth was 1% in both areas
In the first quarter of 2023, the eurozone entered a technical recession, with GDP contracting by 0.1% for two consecutive quarters. This is evident from the GDP data processed by Eurostat.
According to reports from Eurostat, which downgraded its previous estimates, GDP in the 20 countries of the eurozone fell by 0.1% in the first quarter of the year compared to the previous quarter. In the EU as a whole, however, an increase of 0.1% was recorded. Already in the last quarter of 2022, GDP had fallen by 0.1% in the eurozone and by 0.2% in the EU. However, compared to the first quarter of 2022, growth was 1% in both areas. During the quarter, the largest increases were observed in Poland with an increase of 3.8% and in Luxembourg with an increase of 2%. Italy recorded growth of 0.6%. For Germany, on the other hand, minus 0.3%.
What does technical recession mean
We speak of a technical recession when GDP, the gross domestic product, shows a negative cyclical change for two consecutive quarters or when GDP on a quarterly basis is twice in a row lower than that of the previous quarter. The cyclical variation compares the previous quarter, while the trend variation refers to the same quarter of the previous year.
Increase the number of working people
On the other hand, there is good news in terms of employment. In the first quarter, the number of employed persons in the eurozone increased by 0.6% compared to the previous quarter. In the EU as a whole, it increased by 0.5%. Compared to a year earlier, employment in both areas increased by 1.6%. Eurostat thus confirms the May flash estimate for the twenty euro area countries and corrects it downwards for the EU (plus 0.5% instead of plus 0.6%). In the first quarter of 2023, Estonia (+4.4%), Malta (+2.9%) and Ireland (+1.6%) recorded the highest employment growth compared to the previous quarter. Italy registered a plus of 0.8%. On the other hand, the main decreases were recorded in Lithuania (minus 1.5%), Romania (minus 1.1%) and Greece (minus 0.3%).