Europe dodges the bullet of recession in 2023 (but its economy is stagnant)

The European economy will experience a recession in the last quarter of 2023, but avoid a recession. Photo: Europe Press

The Eurozone managed to avoid falling into a technical recession during the last quarter of 2023This means two consecutive quarters of declining activity, despite being exposed to a certain economic paralysis, with the GDP stagnating after a contraction of 0.1% in the last quarter of last year, Eurostat confirmed. .

In the European Union, economic activity showed slight progress of 0.1% in the fourth quarter, exceeding initial expectations by a tenth, after a contraction of 0.1% in the third quarter. Compared to the fourth quarter of 2022, the euro area saw a 0.1% growth in GDP, while the 27th quarter saw a 0.3% increase.

Germany does not raise its head

Regarding EU countries for which data is available, Slovenia led growth in the fourth quarter at 1.1%, followed by Cyprus and Portugal, both at 0.8%. On the other hand, Ireland recorded the worst performance with a contraction of 0.7%, followed by Estonia, Finland and Romania, with a decrease of 0.4%.

In the major European Union economies, Germany saw a contraction of 0.3% in the fourth quarter, after a recession between July and September. France maintained the state of paralysis witnessed in the previous three months, while Italy’s expansion pace accelerated to 0.2%, compared to about 0.1% in the third quarter. Spain, which achieved growth of 0.6% compared to 0.4%, emerged as a large economy with the best performance..

Growth of 0.5% in 2023

Regarding annual growth for 2023, the second Eurostat estimate reveals 0.5% increase in euro area and EU GDP, in contrast to growth of 3.5% and 3.4% respectively in 2022.

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Among the major eurozone economies in 2023, Spain led with an average growth of 2.5%, while France and Italy recorded expansions of 0.9% and 0.7%, respectively. On the other hand, Germany saw a contraction of 0.3%.

In 2023, the United States achieved growth of 2.5%, exceeding the 1.9% expansion in 2022 by six tenths, despite monetary policy tightening measures implemented by the Federal Reserve. For its part, China has accelerated its economic growth, with a 5.2% expansion in 2023, compared to 3% in 2022, when it was affected by anti-Covid-19 measures.

This content was prepared in part using artificial intelligence, in accordance with editorial standards and does not constitute an investment recommendation or suggestion. Investing contains risks. Past returns do not guarantee future returns.

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