Eurozone Contracted in the First Quarter

Eurozone contracted in the first quarter. The 19-member Eurozone shrank by 0.3 percent in the first quarter.

In the first quarter of the year, the Eurozone economy shrank by 0.3 percent on a monthly basis and by 1.3 percent on an annual basis, showing a contraction above the expectations. The Eurozone shrank by 4.7 percent in the last quarter of 2020 compared to the previous quarter. According to the data released by Eurostat, the first quarter growth of the Eurozone was revised from 0.6 percent to 0.3 percent contraction, and from 1.8 percent to 1.3 percent on an annual basis. It was stated that the better numbers of Italy played a role in the upward revision. According to the data announced by Eurostat, employment decreased by 0.3 percent on a quarterly basis and by 1.8 percent on an annual basis in the January-March period. On a country basis, employment increased by 1.1 percent in Hungary, 1 percent in Spain, and 0.8 percent in Cyprus and Lithuania, while employment increased by 3.9 percent in Latvia, 1.7 percent in Greece and Slovakia. fell 1.1 percent. In the second half of the year, the economic recovery is expected to strengthen as household savings and demand for goods and services increase.