Eurozone Economy Contracts 2.5% in 1st Quarter

Eurozone GDP fell 2.5 percent in the first quarter of 2009, compared with the previous quarter, according to second estimates by Eurostat, the statistical service of the European Union (EU), published on Wednesday.

Compared with the same quarter of the previous year, seasonally adjusted GDP declined in the first quarter of 2009 by 4.9 percent in the Eurozone, said Eurostat.

For the 27-member EU, GDP fell 2.4 percent quarter on quarter and 4.7 percent year on year.

In the first quarter of 2009, all EU member states for which seasonally adjusted GDP data are available registered a negative growth compared with the previous quarter, except Poland (+0.4 percent) and Cyprus (0 percent).

In the first quarter of 2009, household final consumption expenditure declined by 0.5 percent in the Eurozone and by 0.6 percent in the whole EU.

Investments fell by 4.1 percent 4.5 percent respectively.

Exports fell by 8.8 percent in the euro zone and 8.3 percent EU-wide. Imports decreased by 7.6 percent and 7.8 percent respectively.

Among the main partners of the EU, GDP fell by 1.4 percent in the United States and 3.8 percent Japan in the first quarter of 2009 compared to the previous quarter. Compared to the first quarter of 2008, the GDP declined by 2.5 percent in the United States and by 8.4 percent in Japan.