Euro Area Stagnated in 1st Quarter, Dodging Winter Recession

Manufacturing is proving to be the biggest drag on euro-area growth.

Photographer: Oliver Bunic/Bloomberg
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The euro-area economy avoided a winter recession after all, with revised data showing it stagnated at the start of this year instead of shrinking as previously thought.

Output in the 20-nation currency bloc was flat in the first quarter, according to updated figures on Eurostat’s website on Thursday. That’s up from a prior reading of -0.1%, which — combined with a decline of the same magnitude at the end of 2022 — had suggested the first six-month contraction since the Covid-19 pandemic.