EU

Eurozone succumbs to mildest of recessions after energy shock

The economy shrank by 0.1 per cent between January and March, revised data showed Thursday, adding to a fourth-quarter decline of the same magnitude

Policymakers will take heart that their billions of euros in aid for households across the bloc meant that fears of much more severe economic damage in the wake of Russia’s invasion didn’t come to pass. Picture: Getty

The euro area suffered the mildest possible recession during the winter after Russia’s war in Ukraine sent energy prices soaring.

The economy shrank by 0.1 per cent between January and March, revised data showed Thursday, adding to a fourth-quarter decline of the same magnitude and resulting in the first six-month contraction since the Covid-19 pandemic.

The outcome will come as a blow after politicians and European Central Bank officials said repeatedly that a downturn could ...