Economic Update
Recent official data indicate that the European economy has stabilized, with GDP growth remaining at a standstill in the fourth quarter of 2024. This marks a notable trend as the German economy, the largest in the eurozone, has experienced zero growth for the second consecutive year.
According to the European Statistical Agency, Eurostat, the gross domestic product within the euro area, which encompasses 20 member countries, exhibited no growth in the last quarter of 2024 when compared to the preceding quarter.
This period also saw a slowdown in the eurozone’s economy, which recorded a growth rate of 0.4 percent in the third quarter of 2024. Contributing factors to this deceleration include corporate instability driven by potential trade disruptions linked to the new administration under U.S. President Donald Trump, coupled with cautious consumer spending heavily impacted by persistent inflationary pressures.
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