Eurozone GDP Flatlines As Estimated

(RTTNews) - The euro area economy came to a standstill at the end of 2023 as initially estimated, but with nil growth the single currency bloc managed to escape a technical recession.

Gross domestic product posted nil growth in the fourth quarter after shrinking 0.1 percent in the preceding period, the flash estimate from Eurostat showed Wednesday.

At the same time, GDP gained 0.1 percent after stagnating in the third quarter. Both quarterly and annual figures matched the flash estimate published on January 30.

The EU27 economy grew 0.1 percent on quarter and advanced 0.3 percent from the same period last year.

The euro area GDP is set to tread water in the first half of this year before staging only a very gradual recovery, Capital Economics economist Jack Allen-Reynolds said.

The Washington-based International Monetary Fund forecast the euro area economy to expand 0.9 percent this year and 1.7 percent in 2025.

The number of employed persons increased 0.3 percent in both the euro area and the EU in the fourth quarter compared with the previous quarter. In the third quarter, employment had climbed 0.2 percent in both zones.

Separately, Eurostat said industrial production growth accelerated in December on a sharp rebound in capital goods output.

Industrial output unexpectedly gained 2.6 percent on month, following a 0.4 percent rise in November. Output was forecast to fall 0.2 percent.

Within total output, capital goods production surged 20.5 percent. Energy, durable and non-durable consumer goods output expanded in December, while intermediate output slid 1.2 percent.

Year-on-year, industrial production registered an increase of 1.2 percent, reversing November's 5.4 percent decrease.