The euro zone’s economy expanded by 0.4% in the third quarter, according to flash figures released by the European Union’s statistics office (Eurostat) on Wednesday 30th October 2024.
Economists had anticipated a growth of 0.2%, following a 0.3% increase in the second quarter.
Analysts predict that euro zone growth may pick up cautiously in the upcoming months, in light of lower interest rates and subsiding inflation.
At its October 2024 meeting, the European Central Bank (ECB) reduced rates for the third time this year, following a final reading of September’s EU headline inflation at 1.8%.
The ECB pointed to sustained indications of sluggish activity in the euro area as a significant reason for the rate cut in October.
Markets have completely factored in another 0.25% reduction by the ECB for its final meeting of the year in December 2024.
Germany, the largest economy in the euro zone, reported an unexpected 0.2% growth in the third quarter, as per figures released on Wednesday 30th October 2024. This growth helped the country steer clear of the recession predicted by some economists.