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The Gross Domestic Product (GDP) of the United States slowed down sharply between January and March to an annual rate of 1.1%, far from the growth it had in the previous quarter, when it was 2.6%. The Eurozone also did not meet expectations and its economic growth was 0.1% in this same period, although an increase of 0.2% was expected.
The broadest measure of US economic output weakened after growing 3.2% from July to September and 2.6% from October to December. In the first quarterly period of 2023, it did not meet the expectations of economists surveyed by ‘Bloomberg’ who forecast 1.9%, but rather its growth achieved the timid 1.1%.
And it is that this scenario of lower growth is consistent with the aggressive impulse of the Federal Reserve, which hoped to control inflation. Although his goal has been achieved month by month to the point that heThe rate reached 5% year-on-year in March, everything indicates that weak data on GDP is the price that must be paid to cool down the economy.
This scenario, that of slow economic growth, is feared by analysts because it could bring about an eventual recession in the world’s leading economy.
As Andrew Hunter of Capital Economics noted: “The economy had less momentum at the start of this year than previously thought. We continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon.” .
Eurozone growth also failed to meet expectations
The Euro Zone, which includes the 20 countries that share the euro as their currency, disappointed analysts who had expected higher GDP growth.
According to him report published this April 28 by EurostatBetween January and March of this year, the zone advanced by 0.1%, while economists surveyed by the Reuters news agency estimated an increase of at least 0.2%.
Germany, the largest economy in the Eurozone, closed the first quarter of 2023 in stagnation (0.0%) compared to the previous quarter, when it registered a decrease of 0.5.
France, on the other hand, the second largest economy on the European continent and the country that has experienced strong demonstrations for the project and approval of the pension reform, had growth of 0.2%.
For the European Union (EU) as a whole (including the countries of the bloc that do not use the common currency), an advance of 0.3% was registered in relation to the previous quarter.
with Reuters
