Euro zone GDP shrinks less than expected in Q1, April inflation rises

The core inflation drop reinforces calls by European Central Bank doves to maintain the stimulus to the economy

The euro zone economy shrank less than expected in the first three months of the year, preliminary data showed on Friday, while headline inflation picked up as expected on a surge in energy prices.
 

The European Union's statistics office Eurostat said gross domestic product in the 19 countries sharing the euro contracted 0.6% quarter-on-quarter for a 1.8% year-on-year fall.
 

This put the single currency area in a technical recession after a 0.7% quarterly GDP fall in the last quarter of 2020.
 

Economists polled by Reuters had expected a 0.8% quarterly and a 2.0% annual decline.
 

The euro zone's first quarter