Eurozone growth slows down hit by impact of Ukraine war and pandemic
The eurozone's economic growth slowed to 0.2% in the first quarter from the previous quarter, while inflation remained at a record high in April, Eurostat said on Friday, against the backdrop of the pandemic and the war in Ukraine.
From October to December, gross domestic product (GDP) growth had reached 0.3% for the 19 countries sharing the single currency.
For the European Union as a whole, GDP grew by 0.4% in the first quarter, after 0.5% in the last three months of 2021, according to preliminary estimates from the European statistics office.
After three quarters in positive territory, the growth rate has nevertheless remained on a strong upward trend over the year: +5% for the euro zone, +5.2% for the EU, compared to the first quarter of 2021.
Among the large countries, Spain and Germany saw their economies grow by 0.3% and 0.2% respectively in the first three months of the year, quarter-on-quarter. France stagnated (0%) and Italy fell (-0.2%).
The economy is notably handicapped by the rise in consumer prices, notably in the energy sector, aligned with the war in Ukraine. The inflation rate in the euro zone remained at a record level in April, at 7.5% over one year, according to Eurostat.
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