BRUSSELS/FRANKFURT- Euro zone economic growth was slower than expected in the first three months of the year, preliminary data showed on Friday, as the war in Ukraine started on Feb 24 hit economic activity and helped drive inflation to a new high.
The European Union’s statistics office Eurostat said gross domestic product in the 19 countries sharing the euro rose 0.2 percent quarter-on-quarter for a 5.0 percent year-on-year gain. Economists polled by Reuters had expected 0.3 percent quarterly growth.
Euro zone inflation rose to 7.5 percent in April from 7.4 percent in March, in line with expectations, driven by a persistent surge in energy and food prices that have been exacerbated by the Russian invasion of Ukraine.
The European Commission forecast just before the invasion that euro zone growth would be 0.3 percent quarter-on-quarter, so the preliminary data, if confirmed, would suggest the war and the related commodity and food price spikes cut growth by 0.1 percentage points. – Reuters
