Eurozone economy grows less than expected in Q1

The eurozone economy grew at a slower rate than expected in the first quarter, according to preliminary figures released on Friday by Eurostat.

The eurozone economy expanded by 0.1% quarter-on-quarter, which was a touch below consensus expectations of 0.2% growth.

Compared with the same quarter a year earlier, GDP grew 1.3%, following 1.8% growth in the previous quarter.

Oxford Economics said: "While we await the breakdown of the national accounts data, country outturns released today suggest that net exports were the main driver of the slight positive outturn in Q1.

"Easing supply bottlenecks, lower energy prices and signs of global economic resilience offset weakness in private consumption, with real household incomes still struggling under the weight of high inflation.

"We don't expect growth to pick up meaningfully over the course of 2023. The robust start to 2023 for industry will likely be short lived, while elevated inflation and tightening financial conditions will keep a lid on growth this year."