The eurozone’s economy grew by 0.2 percent during the first three months of the year, Eurostat, Europe’s statistics agency, reported on Friday, as rising prices, declining consumer confidence in the war in Ukraine and continued supply chain disruptions hampered the region’s economy. recovery after the pandemic.
“It is clear that the picture for the first quarter is one of rather weak growth,” said Ángel Talavera, Head of European Economics at Oxford Economics. “Consumer confidence has fallen quite sharply everywhere,” he noted, adding that household consumption was weak as wages did not keep pace with inflation, especially in food and energy.
The figures for gross domestic product, the broadest measure of economic output, varied widely among the 19 countries using the euro. In France, where Covid restrictions remained in place for most of the first quarter, growth stagnated.
The Spanish economy performed slightly better, growing by 0.3 percent in the first quarter of 2022 compared to the previous three months. However, the improvement was much less than the 2.2 percent recorded in the last quarter of 2021.
Germany, with the largest economy in Europe, saw a 0.2 percent increase in GDP for January, February and March, bringing year-on-year growth to 4 percent.
“The economic consequences of the war in Ukraine have had a growing impact on short-term economic development since the end of February,” the German Federal Statistical Office said in a statement.
In Italy, on the other hand, real GDP fell by 0.2 per cent over the previous quarter.
Growth in the 27 countries that make up the EU was slightly brighter in January, February and March and increased by 0.4 percent compared to the previous three months.