The latest disappointing growth figure follows similarly sub-par growth estimates from the US yesterday which have stoked fears of a looming recession in the world’s largest economy.
The 20 countries that use the euro currency gained at least some momentum in the first quarter after zero growth in the last three months of 2022. The eurozone avoided a winter recession thanks to mild weather that alleviated pressure on natural gas supplies.
European governments and utilities also scrambled to line up additional sources to heat homes, generate electricity and power factories after Russia cut off most gas supply to the continent over its war against Ukraine.
The mild weather also allowed an early start to construction activity. Furthermore, industrial activity has picked up this year, while China’s reopening after lifting its Covid-19 restrictions has helped to boost the outlook for the global economy.
However, inflation continues to dampen consumer spending...