Eurozone narrowly avoids recession as German economy shrinks

Single currency zone’s stagnating GDP figure will add to pressure for ECB
interest rate cut

The 20-nation eurozone has narrowly avoided recession after the region’s
economy flatlined at the end of 2023, official figures show.

Zero growth in the single currency zone in the final quarter of last year
followed a 0.1% economic contraction in the third quarter, meaning that
recession – defined as two consecutive quarters of contraction – was just
averted. Economists polled by Reuters had expected the eurozone’s economy
to shrink by 0.1% in the fourth quarter.

The eurozone’s two biggest economies both performed poorly in late 2023,
with Germany contracting by 0.3% and France posting no growth for a second
successive quarter, according to Eurostat, the EU’s statistical agency.

There was better news from the other two members of the eurozone’s “big
four”. Italy, which had been expected to stagnate, recorded growth of 0.2%,
while Spain expanded by 0.6% – three times the 0.2% forecast.

Of the smaller eurozone economies, Portugal grew by 0.8% in the final
quarter, Austria expanded by 0.2%, while Ireland’s economy contracted by
0.7% – its fourth successive quarterly fall in 2023.

Eurostat said that the broader 27-nation European Union also posted no
growth in the fourth quarter. From the fourth quarter of 2022 and the final
quarter of 2023, the eurozone expanded by just 0.1%, while the EU grew by
0.2%.

“The eurozone economy escaped recession by the skin of its teeth by the end
of 2023,” Diego Iscaro, head of Europe economics at S&P Global Market
Intelligence, said. “The outlook for 2024 continues to be challenging amid
faltering demand and increasing geopolitical tensions.”

<https://www.theguardian.com/business/2024/jan/30/eurozone-recession-germany-economy-gdp-ecb-interest-rate-cut>

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Spike

On 30/01/2024 01:12 pm, Spike wrote:
>
> Eurozone narrowly avoids recession as German economy shrinks
>
> Single currency zone’s stagnating GDP figure will add to pressure for ECB
> interest rate cut
>
> The 20-nation eurozone has narrowly avoided recession after the region’s
> economy flatlined at the end of 2023, official figures show.
>
> Zero growth in the single currency zone in the final quarter of last year
> followed a 0.1% economic contraction in the third quarter, meaning that
> recession – defined as two consecutive quarters of contraction – was just
> averted. Economists polled by Reuters had expected the eurozone’s economy
> to shrink by 0.1% in the fourth quarter.
>
> The eurozone’s two biggest economies both performed poorly in late 2023,
> with Germany contracting by 0.3% and France posting no growth for a second
> successive quarter, according to Eurostat, the EU’s statistical agency.
>
> There was better news from the other two members of the eurozone’s “big
> four”. Italy, which had been expected to stagnate, recorded growth of 0.2%,
> while Spain expanded by 0.6% – three times the 0.2% forecast.
>
> Of the smaller eurozone economies, Portugal grew by 0.8% in the final
> quarter, Austria expanded by 0.2%, while Ireland’s economy contracted by
> 0.7% – its fourth successive quarterly fall in 2023.
>
> Eurostat said that the broader 27-nation European Union also posted no
> growth in the fourth quarter. From the fourth quarter of 2022 and the final
> quarter of 2023, the eurozone expanded by just 0.1%, while the EU grew by
> 0.2%.
>
> “The eurozone economy escaped recession by the skin of its teeth by the end
> of 2023,” Diego Iscaro, head of Europe economics at S&P Global Market
> Intelligence, said. “The outlook for 2024 continues to be challenging amid
> faltering demand and increasing geopolitical tensions.”
>
> <https://www.theguardian.com/business/2024/jan/30/eurozone-recession-germany-economy-gdp-ecb-interest-rate-cut>

Can't be true. Has to be a wind up.

Everybody knows, not least by being assured by usenet pundits including
May Sun, that the EU is far better off economically than the
non-recession United Kingdom.