An worker locations an merchandise within the window show at a delicatessen within the Piazza Campo di Fiori in Rome, Italy, on Tuesday, Dec. 6, 2016.
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The euro zone economic system noticed zero progress within the fourth quarter, flash figures revealed by the European Union’s statistics company Eurostat confirmed Thursday.
Economists polled by Reuters had anticipated progress of 0.1% over the interval, following a larger-than-expected 0.4% enlargement within the third quarter.
The bloc-wide information comes after worse-than-expected progress prints from the euro zone’s two largest economies, Germany and France. Earlier on Thursday, official information confirmed that Germany’s gross home product fell 0.2% within the fourth quarter, whereas France’s economic system additionally shrank barely over the identical interval. Italy’s economic system additionally flatlined quarter-on-quarter, information confirmed earlier Thursday.
In stark distinction, Spain’s gross home product grew by 0.8% within the fourth quarter, the nation’s statistics workplace INE stated Wednesday.
The European Central Financial institution has sought to spice up financial exercise and funding within the euro zone by implementing 4 curiosity cuts final 12 months. The ECB is anticipated to make one other 25-basis-point trim when it meets in a while Thursday to deliver the important thing price, the deposit facility, all the way down to 2.75%.
Economists anticipate the central financial institution to make additional rate of interest cuts this 12 months as fears over faltering progress trump issues over cussed inflation within the bloc.
In December, the central financial institution forecast that the euro zone economic system would develop by 1.1% in 2025, saying that it expects euro space GDP progress to “weaken considerably within the brief time period, amid vital uncertainty.”
“Survey-based indicators related for exercise, such because the Buying Managers’ Index (PMI) and enterprise and client confidence indicators from the European Fee, stay subdued,” the central financial institution acknowledged in December.
The ECB had anticipated the economic system to develop by 0.2% within the fourth quarter of 2024 because the one-off components supporting progress final summer time, such because the Paris Olympics, pale, and amid persevering with “subdued confidence, excessive uncertainty and geopolitical tensions.” The central financial institution anticipates GDP progress to be 0.3% within the first quarter of 2025.
Central financial institution policymakers can be aware of inflationary pressures within the area, with the euro zone client worth index ticking upward in latest months, hitting 2.4% in December.
Core inflation, which strips out risky meals and vitality costs, was unchanged at 2.7% for the fourth consecutive month in a row. The central financial institution forecast the inflation price within the bloc to come back in at 2.1% this 12 months.