(Corrects second paragraph to say "first" quarter, not
"fourth")
BRUSSELS, April 28 (Reuters) - The euro zone grew only
marginally in the first three months of 2023 and at a rate lower
than market expectations after stagnation at the end of last
year, preliminary data showed on Friday.
Gross domestic product in the euro zone expanded by 0.1% in
the first quarter, below expectations in a Reuters poll for 0.2%
growth. Compared to a year earlier, growth was 1.3% against
expectations of 1.4%.
That compared with zero growth in the previous quarter for
the current 20-nation euro zone and a quarterly decline of 0.1%
for the 19 countries that were in the euro zone at that point.
Among the bloc's biggest countries, Germany registered no
growth after contraction in the final quarter of 2022. The
economies of France, Italy and Spain did expand.
Surging inflation due to high energy costs following
Russia's invasion of Ukraine and rising food prices, waning
confidence and increased interest rates have taken a toll on the
single currency's economy.
But the economy has displayed some unexpected resilience,
too, much like during the COVID-19 pandemic, when growth
outperformed expectations as businesses adjusted faster to
changed circumstances than policymakers had predicted.
But even if the bloc is doing better than feared, growth in
2023 will be among the weakest on record due to a large drop in
real incomes and surging interest rates.
The European Commission is forecasting that the euro zone
will expand by 0.9% this year and by 1.5% next. The EU executive
said the bloc would avoid a recession, but was beset with
challenges - from inflation and monetary tightening to weak
external demand and general uncertainty.
For further details of Eurostat data click on: (Reporting by Philip Blenkinsop; editing by Andrew Gray)
