Economic activity throughout Europe slowed in the fourth and final quarter of 2022 but remained in positive territory, helping the continent to avoid a recession.
Eurostat, the statistics agency of the European Union, reported that gross domestic product (GDP) in the 19 countries that use the Euro currency grew 0.1% in last year’s fourth quarter from the previous third quarter.
GDP growth in Europe rose 1.9% on a year-over-year basis in Q4. The result was in line with a preliminary estimate issued on January 31 of this year, and it helped the European Union to avoid a recession that had been expected among economists.
A recession is commonly defined as two consecutive quarters of economic contraction.
Additionally, employment rose more than expected during Q4, highlighting the resilience of Europe’s labour market.
Employment throughout Europe increased by 0.4% in Q4, which was twice as fast as economists polled by the Reuters news agency had expected.
Year-over-year, employment growth in Europe was 1.5% in the final months of 2022, according to Eurostat.
As with Canada and the U.S., employment growth has remained strong in Europe despite rising interest rates used to cool inflation and bring consumer prices lower.