Recession ended in the Eurozone
First quarter growth data in the Eurozone showed that the recession in the region is over. In addition, inflation data gave permanent signals.
While the Eurozone economy emerged from recession with a growth that exceeded expectations, led by its four largest members, the recent decline in inflation stopped.
According to Eurostat data, gross domestic product increased by 0.3 percent in the first quarter compared to the previous three months. The median expectation in the Bloomberg survey pointed to growth of only 0.1 percent. According to separate data, consumer prices in the region increased by 2.4 percent on an annual basis in April – both in line with expectations and at the same level as March.
Hopes for the Eurozone economy began to rise after production fell due to high inflation, rising interest rates and weak global demand. The biggest contribution to the revival of the region came from Germany, which experienced a recovery in its problematic industrial sector. The European Central Bank is also expected to support the revival of the economy by starting interest rate cuts as of June.