Euro zone stagnates as politics bruises confidence

The euro zone unexpectedly stagnated at the end of last year as government collapses in its top two economies bruised confidence among businesses and consumers.

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Fourth-quarter gross domestic product was unchanged from the previous three months, Eurostat said, defying analysts' estimates that the 20-nation bloc eked out growth of 0.1%. Output fell 0.2% in Germany and 0.1% in France.

Over the whole of 2024, euro-area GDP rose 0.7%, Eurostat said. The region is struggling to find growth drivers as a manufacturing malaise in Germany weighs on output and sentiment is soured by the threat of punitive trade measures from US President Donald Trump. Italy and Austria both saw GDP flatline.