The Euro Area’s economy unexpectedly registered zero growth in the final quarter of 2023, a preliminary estimate showed, following a 0.1% contraction in the third quarter.
In comparison, market consensus had pointed to a 0.1% GDP decrease.
The bloc has avoided a recession, as Spain and Italy reported stronger-than-expected quarterly GDP growth – 0.6% and 0.2%, respectively.
Positive contributions to the bloc’s growth also came from economies such as Portugal (0.8% QoQ growth), Belgium (0.4%), Latvia (0.4%) and Austria (0.2%).
Conversely, a GDP contraction was reported by Ireland (-0.7%), Germany (-0.3%) and Lithuania (-0.3%).
Meanwhile, the French economy stagnated in the fourth quarter of 2023.
For the entire 2023, the Euro Area’s economy grew 0.5%.
Yet, the 2024 outlook remains challenging amid elevated interest rates and inflation, along with a softer demand – both domestically and from abroad.
The Euro was last inching down 0.05% on the day against the US Dollar, with the EUR/USD currency pair trading at 1.0825. The major Forex pair was hovering just above yesterday’s 7-week low of 1.0796.
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