Eurozone. Photo: Politico
The eurozone economy recorded an unexpected contraction in the first quarter, dragged down by a sharp fall in Irish gross domestic product — a recurring distortion linked to the accounting practices of the many multinationals based in the country.
According to new data from the EU’s statistics agency, GDP in the 21-country single currency area fell by 0.2 percent in the first three months of the year compared with the previous quarter — sharply lower than its initial estimate of 0.1 percent growth.
The unusually large downward revision was due to a steeper-than-estimated drop in activity in Ireland — now put at 12.1 percent, far beyond an initial two-percent forecast.
Ireland’s Central Statistics Office said Thursday the exceptional revision was due to the inclusion of data linked to multinationals, which carry enormous weight in the Irish economy.
