No technical recession in euro zone as Eurostat revises up Q1 GDP

BRUSSELS (Reuters) – Euro zone gross domestic product was flat in the first three months of this year against the previous quarter, the EU’s statistics agency Eurostat said on Thursday, revising a previous reading of a 0.1% quarter-on-quarter contraction.

The revision means that the 20 countries sharing the euro currency did not, after all, enter a technical recession after a 0.1% quarter-on-quarter contraction in the last three months of 2022, as indicated by Eurostat’s data in June.

Eurostat said on Thursday euro zone GDP fell 0.1% in the October-December 2022 period against the previous three months but was then flat in the January-March 2023 period.

In year-on-year terms euro zone GDP grew 1.1% in the first quarter of 2023, an upward revision from the 1.0% reported in June, after a 1.7% year-on-year rise in the previous three months, revised from 1.8% reported in June.

(Reporting by Jan Strupczewski; Editing by Alex Richardson)