Economics

Euro zone may dodge recession after surprise growth

France notched unexpected GDP expansion while Italy shrank

Shoppers on Grafton Street, Dublin. Better-than-expected figures published by Eurostat indicate the Euro Zone may not slip into recession. Photo: Fergal Phillips

Gross domestic product edged up by 0.1 per cent in the final quarter, Eurostat said Tuesday, defying economist estimates for a contraction of 0.1 per cent. While German and Italian output shrank, France and Spain recorded expansion. There was also stronger-than-anticipated data on Monday from Ireland.

The euro region, which expanded to 20 countries when Croatia joined on January 1, has struggled with record spike in prices sparked by the war-induced surge in energy costs. ...