The eurozone economy is starting a 0.1% increase in the first quarter, which misses expectations as Germany stagnates

1 May, 2023: On Thursday, preliminary figures showed that the eurozone economy increased by a marginal 0.1% in the first quarter, even as Germany’s GDP flatlined.

The print came in below analyst anticipations, with a Reuters poll of economists last forecasting a quarterly increase of 0.2%. The economy expanded by 1.3% annually, just missing an outlook of 1.4%.

Earlier this month, statistics agency Eurostat revised its fourth-quarter 2022 gross domestic samples estimate for the eurozone from 0.1% quarterly growth to zero after 0.4% expansion in the third quarter.

The slight first-quarter developed signal comes as economic performance contends with increased inflation.

Energy expenses have been a main driver over the previous year, as European consumers progressively lost permission to Russian supplies in the wake of Moscow’s full-scale invasion of Ukraine.

Carsten Brzeski, international head of macro at Dutch bank ING, said that the decreases in wholesale energy costs, warmer-than-anticipation weather and fiscal stimulus had helped the bloc dodge a widely feared slump over the winter.

But he noted huge disparities between individual countries. He said that future growth would be impacted by an ongoing race amid positive momentum in industry and wage increase on the one hand and European Central Bank monetary which tightens U.S. recession risks.