New economic data released this morning from Eurostat reveals that Euro area gross domestic product (GDP) contracted for a sixth consecutive quarter, revealing that economic growth remains elusive across much of Europe.
Euro area GDP contracted by 0.2 percent while EU 27 GDP contracted by .o1 percent during the first quarter of 2013, compared with the first quarter.
Economists from Factset were expecting a contraction of 0.1 percent in the Euro area.
Compared with the same quarter of the previous year, seasonally adjusted GDP fell by 1.0 percent in the euro area and 0.7 percent in the EU 27 during the first quarter of 2013, after -0.9 percent and -0.6 percent respectively in the previous quarter.
Germany, the largest economy in the Europe which accounts for 1/3 of Euro area GDP, narrowly avoided recession by only growing +0.1 percent for the quarter.
Italy, the euro zone’s third largest economy, reported its seventh consecutive quarter of economic contraction by registering a -0.5 contraction.
The Netherlands reported a -0.1 percent contraction in first quarter of 2013.
France, the second largest economy in the Euro area, reported -0.2 growth for the first quarter of 2013.
In early May the European central bank (ECB) cut its benchmark rate by a quarter of a percentage point to a new record low of 0.5 percent.
The ECB forecasts that the euro area economy will contract 0.5 percent this year.
Following the release of this new economic GDP data from Europe, the euro fell to a six-week low against the U.S. dollar.