Europe's economy has shrunk. For households that are hurting, it's just numbers
The European economy has contracted slightly at the end of last year and beginning of 2023
LONDON (AP) — The European economy contracted slightly at the end of last year and beginning of 2023, revised figures showed Thursday, underlining the impact of the loss of Russian natural gas and high inflation on consumer spending.
The economic growth figure for the 20 countries that use the euro currency was revised down from zero to minus 0.1% for the fourth quarter of 2022. The number for the first three months of this year also was downgraded from scant 0.1% growth to minus 0.1%.
That means the eurozone endured two consecutive quarters of declining output, which is one definition of recession often used in political and economic discussions, dubbed a “technical” recession.
However, the economists on a panel that declares eurozone recessions use a broader set of data, including unemployment figures. European labor markets have held up relatively well to recent economic shocks. Unemployment is at its lowest level since before the creation of the euro in 1999, hitting 6.5% in April.
