TOUGH BREAK

Eurozone Officially Slipped Into a Recession This Year, New Data Shows

It’s a mild downturn, with the 20 countries that use the euro dropping by just 0.1% in economic output for two quarters in a row.

The Eurozone, an economic region of 20 countries that use the euro, officially fell into a recession—albeit a mild one—earlier this year, according to revised data published Thursday. Economic output dropped 0.1% over the first three months of 2023, following a dip of the same magnitude in the fourth quarter of 2022. The drop cemented the zone’s first six-month contraction since the early stages of the pandemic, meeting the technical definition of a recession. Energy and food costs have soared as Russia’s invasion of Ukraine has intensified inflation in the region, with overall consumer prices in May standing at 6.1% higher than a year ago, CNN reported. The fourth quarter saw a decline of 1% in spending, recovering slightly but remaining in the red in this year’s first quarter at 0.3%. Government spending took a sharp plunge at the beginning of the current quarter, with a contraction of 1.6% compared to the year prior.