Europe's economy ekes out slight growth at start of 2023
The European economy has scraped out meager growth of 0.1% in the first three months of the year
FRANKFURT, Germany (AP) — The European economy scraped out meager growth of 0.1% in the first three months of the year, barely gaining momentum after dodging a winter recession as challenges persist from inflation that corrodes people’s willingness to spend.
Friday’s less-than-stellar figure follows disappointing growth estimates from the U.S. a day earlier that kept alive fears of a looming recession in the world’s largest economy.
The 20 countries that use the euro currency picked up speed 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 supply to the continent over its war against Ukraine.
Industrial activity has picked up, and China’s reopening from COVID-19 restrictions boosted the outlook for global economy. The mild weather also allowed an early start to construction activity.
