Stay informed with free updates
Simply sign up to the Eurozone economy myFT Digest — delivered directly to your inbox.
The Eurozone economy unexpectedly grew by 0.2 per cent in the third quarter, after French output expanded at the fastest pace since 2023.
The quarter-on-quarter figure was better than the 0.1 per cent growth expected by economists in a poll by LSEG.
It came after France’s statistical office Insee said earlier on Thursday that the Eurozone’s second-biggest economy grew by a better than expected 0.5 per cent in the third quarter, despite the country’s recent political turmoil.
By contrast, Germany and Italy failed to grow in the third quarter.
Although Germany has now avoided a technical recession, the country has recorded 14 consecutive quarters of low growth, zero growth or economic contraction.
Despite the protracted economic slump in Germany since Russia’s full-scale invasion of Ukraine, the European Central Bank is widely expected to keep interest rates unchanged at 2 per cent for the third meeting in a row when it announces its latest decision later on Thursday.
Deutsche Bank economist Robin Winkler said the outlook for Germany in the fourth quarter was “better” as Chancellor Friedrich Merz’s debt-funded spending on defence and infrastructure is set to rise. New tax incentives for companies that have applied since July also “appear to be having their first effects”, Winkler said.
The euro traded flat against the dollar at $1.162 after the data was released, up 0.2 per cent on the day.
Credit: Source link
