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Euro-Zone economy grew more than estimated at start of year
Economy

Euro-Zone economy grew more than estimated at start of year

08.06.2022
Output rose 0.6% from the previous three months in the first quarter
The ECB will present new economic forecasts on Thursday
The ECB will present new economic forecasts on Thursday
Photo credit: Shutterstock

The euro-area economy expanded by more than estimated at the start of 2022, though the upgrade was driven by trade and revealed pressure on consumers.

Output rose 0.6% from the previous three months in the first quarter -- exceeding an earlier reading for a 0.3% advance released last month. But even as employment increased 0.6%, consumption fell 0.7% amid lingering lockdowns, Eurostat said Wednesday.

The 19-member currency bloc is facing contradictory forces as the loosening of Covid-19 restrictions coincides with Russia’s war in Ukraine. While households and businesses are suffering from surging prices, the services sector is seeing strong demand and tourism is gearing up for a bumper summer season. 

The underlying momentum is emboldening European Central Bank officials to pare back stimulus, with a first interest-rate hike in more than a decade probably coming in July. The ECB will present new economic forecasts on Thursday as the Governing Council wraps up a two-day meeting to decide on its next policy steps. 

©2022 Bloomberg L.P.


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