The European Union experienced positive economic growth in the first quarter of this year, with major economies such as Germany and France leading the way. Germany, as the bloc’s largest economy, saw its gross domestic product grow by 0.2 percent after two consecutive quarters of contraction. France also recorded a 0.2 percent growth in GDP, while Spain and Portugal saw impressive 0.7 percent growth each. Italy’s economy also picked up speed, expanding by 0.3 percent compared to 0.1 percent in the previous quarter.
Despite the slow recovery, there are signs of stabilization in industrial production, which was impacted by soaring energy prices in 2022. This is particularly evident in Germany where business confidence has been steadily increasing throughout the year, measured by the Ifo institute. While services have been a major driver of the economic upturn, analyst Andreas Rees from Unicredit believes that positive growth in Germany is a sustainable trend and not just a short-term boost. He expects further moderate growth in the next few quarters due to rising global trade and lower inflation rates compared to the previous year. This indicates that the worst may be behind the European Union in terms of economic challenges.