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Euro zone stagnates as politics bruises confidence
The Citizen
|January 31, 2025
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.
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