FRANKFURT (Reuters) – The euro zone economy grew a touch faster than initially thought in the last quarter of 2024 but employment barely grew, offering further evidence that the economy of the 20 countries sharing the euro is broadly stagnant.
Euro zone GDP grew by 0.1% in the fourth quarter, Eurostat said on Friday, raising its previous estimate which had shown stagnation.
Compared with a year earlier, the economy expanded by 0.9%, the same as in the previous quarter but a modest expansion from earlier quarters.
Employment grew by just 0.1% on the quarter, with the expansion remaining on a downward trend since early 2022.
Economic growth is now seen picking up slightly, to just above 1% in 2025, but that projection is subject to downside risks.
Consumption is barely growing, the labour market is softening, industry remains in recession, and the threat of tariffs from the U.S. is weighing on investment.
Energy prices are also sharply higher because of surging natural gas costs, suggesting that the bloc’s economy will remain stagnant for some time to come, economists say.
(Reporting by Balazs Koranyi; Editing by Hugh Lawson)
Comments