Eurozone economy shrank by 0.1% in the final quarter of last year, and the first three months of 2023, putting it into technical recession.

GDP across the euro area shrank by 0.1% in the first quarter of this year, downgraded from a previous estimate that the economy stagnated.

That follows a 0.1% contraction in GDP in the fourth quarter of last year, meaning the eurozone has shrunk for two quarters in a row – the standard definition of a recession.

It was dragged down by Ireland, where GDP fell by 4.6% in the first quarter of this year – although economists have questioned whether that really reflects the performance of the Irish economy.

Lithuania’s economy shrank by 2.1%, while the Netherlands contracted by 0.7%,

Germany, Europe’s largest economy, shrank by 0.3% and is also in recession.

Poland (+3.8%) recorded the highest increase of GDP compared to the previous quarter, followed by Luxembourg (+2.0%) and Portugal (+1.6%).

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