EU’s economic growth slowed while employment level holds steady

The eurozone economy expanded at a slower pace than expected in the first quarter, with employment level holding steady. That means the EU keeps creating jobs despite years of sluggish growth. 

In the first three months, GDP rose 0.3%, below the forecast 0.4%, but above the previous quarter’s reading. Industry finally expanded, and employment growth also accelerated.

The bloc’s economy rose 1.2% from a year earlier, in line with the European Central Bank’s estimate of the EU’s potential. 

Although the eurozone has been lagging behind the US in recent years, the quarterly growth of 0.3% is far better than the 0.3% contraction recorded in the United States, mostly driven by a sharp increase in the country’s imports ahead of the imposition of duties.

The EU employment rate was up 0.3% from a quarter earlier. This mitigated concerns that anemic growth could prompt companies to lay off staff. Unemployment has been holding at the record low of 5.9% all year. 

Among the region’s leading economies, Germany expanded by 0.2%, France by 0.1%, Italy by 0.3%, and Spain by 0.6% compared to the previous quarter.