EU agency revises down first-quarter growth figure

THE European economy expanded less than previously thought in the first quarter of 2023, the European Union statistics agency said Tuesday (May 16), revising its previous figure.

The full 27-member EU grew by 0.2 per cent instead of 0.3 per cent in the first three months of the year compared with the previous period, Eurostat said after compiling revised data.

The agency, however, recorded no change for the single currency eurozone area’s economic growth of 0.1 per cent in the first quarter of 2023.

Despite the revision, the EU still avoided a recession last winter after gross domestic product contracted by 0.1 per cent in the last three months of 2022.

On Monday, the European Commission boosted its 2023 economic growth outlook for the 20-country euro area by 0.2 points to 1.1 per cent.

The EU executive also raised its growth forecast for the bloc as a whole for 2023, but it remains lower than the eurozone at around 1 per cent.

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The commission also revised its eurozone inflation forecast, predicting it will reach 5.8 per cent this year compared to 5.6 per cent in the previous outlook. AFP