Eurozone final Q1 Gross Domestic Product revised to -0.1% QoQ vs. 0.1% first estimate

• The Eurozone economy unexpectedly contracted 0.1% in the first quarter.                
• EUR/USD holds gains near 1.0730 despite the downbeat Eurozone GDP data.

The Eurozone economy contracted in the first quarter of 2023, the final estimate published by Eurostat confirmed on Thursday.

The Gross Domestic Product (GDP) in the old continent shrank 0.1% in the first three months of this year compared with the previous quarter. The preliminary figure showed a 0.1% growth during the reported period. The market estimated a 0% clip.

On an annual basis, the bloc’s GDP grew 1.0%, down from the 1.3% expansion initially estimated and missing the market expectation of a 1.2% increase.

Eurozone’s Final Employment Change came in at 0.6% and 1.6% on a monthly and yearly basis respectively.

Market reaction

The Euro is unperturbed by the discouraging Eurozone data, with EUR/USD adding 0.28% on the day near 1.0730.