Eurozone economy shrinks for sixth quarter in succession

The continuing recession in the eurozone has been confirmed by the GDP figures for the first quarter of this year — making it the sixth quarter in a row in which the economy shrank.

The European Commission was putting the best possible interpretation on the figures, saying they were broadly in line with expectations, and with the first flash estimate issued last month.

There were no figures for Ireland. The Central Bank has forecast modest growth of 1.2% for the year while the last official figures for the fourth quarter of 2012 showed zero growth.

Figures were not returned for Greece, Malta or Luxembourg either.

Compared to the previous three months from last October to December the fastest growing economies were Lithuania and Latvia (1.3% and 1.2%) with Cyprus, now in a programme, showing the greatest contraction at -1.3%, followed by the Czech Republic.

Compared with the same quarter of the previous year, GDP fell by 1.1% in the euro area and by 0.7% in the EU27 in the first quarter of 2013, after -1.0% and -0.7% respectively in the previous quarter, Eurostat reported.

During the first quarter of 2013, GDP in the United States grew by 0.6% compared with the previous quarter (after +0.1% in the fourth quarter of 2012).

Compared with the same quarter of the previous year, GDP rose by 1.8% (after +1.7% in the previous quarter).

There were some signs of stabilisation, however, with German growth up 0.1% compared to the previous quarter.

On the other hand, France contracted by 0.2% and Italy and Spain by 0.5%.

Business activity in the eurozone slowed further in May, according to the Markit Eurozone Composite Purchasing Managers Index. Its rating of 47.7 was up on the April figure of 46.9 points.

Germany was up as was Spain but France was still below 45.

Markit’s chief economist Chris Williamson said that the figures showed that the eurozone was still gripped in the longest recession since the introduction of the single currency.