The Eurozone economy unexpectedly stagnated in the fourth quarter of 2024, marking its weakest performance and missing expectations of a modest 0.1% expansion.
Eurozone economy stalls in Q4 as growth weakens
This follows a 0.4% growth rate in Q3, highlighting a loss of momentum amid economic headwinds.
The region’s two largest economies, Germany and France, saw surprising contractions, with Germany’s GDP shrinking by 0.2% and France’s declining by 0.1%. Meanwhile, Italy’s economy remained flat for the second consecutive quarter, Austria showed no growth, and Ireland’s GDP fell by 1.3%, reflecting broader economic challenges.
However, some Eurozone countries bucked the trend with solid performances. Spain’s economy expanded by 0.8%, Portugal posted an impressive 1.5% growth, and Lithuania’s GDP rose by 0.9%. Belgium (0.2%) and Estonia (0.1%) also recorded modest gains, providing pockets of resilience.
Eurozone GDP grows 0.7% in 2024, below expectations
Every year, the Euro Area’s GDP grew by 0.9% in Q4, matching the growth rate of Q3 but slightly below forecasts of 1%. The economy expanded by 0.7% for the entire year, an improvement from 0.4% in 2023, yet still indicative of sluggish overall growth.
