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Eurozone in recession as rising prices hit spending

BBC

Published: 09 Jun 2023

Eurozone in recession as rising prices hit spending
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The eurozone fell into recession this winter, revised figures show, as consumers were hit by rising prices.

The economy of the 20 nation-bloc contracted by 0.1% between January and March, after also shrinking in the final three months of 2022.

A recession is generally defined as when an economy shrinks for two three-month periods, or quarters, in a row.

As in other regions, the eurozone has been hit by rising food and energy prices that have weighed on households.

Spending by households in the bloc fell by 0.3% in the first three months of 2023, and by 1% in the previous quarter.

Initial growth estimates had suggested that the eurozone had avoided a recession and expanded by 0.1% in the first three months of the year. But updated figures from Eurostat showed it had shrunk in the first quarter.

Revised data from Germany - Europe's largest economy - contributed to the move into recession.

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