Euro zone Q3 GDP growth weaker than expected, highlighting the urgent need for sustainable economic policies and reforms to drive recovery and ensure future resilience.
Euro zone economic growth was weaker than expected in the third quarter, according to a flash estimate by the European Union’s statistics office Eurostat. The data showed that gross domestic product (GDP) in the 20 countries sharing the euro contracted slightly quarter-on-quarter and the year-on-year growth rate slowed sharply.
Economists had predicted a 0.0% quarterly growth and a 0.2% year-on-year gain, but the actual figures fell short of these expectations. Germany experienced a 0.1% quarterly slump, while Italy saw no growth. Austria, Portugal, Ireland, Estonia, and Lithuania all experienced contractions.
On the positive side, France saw 0.1% quarterly growth, Spain saw 0.3% growth, and Belgium saw 0.5% growth. However, these gains were not enough to offset the overall decline in the euro zone economy.
The weak economic growth can be attributed to various factors, including high inflation, record high interest rates, and slowly tightening fiscal policy. These factors are creating strong headwinds for the euro zone economy.
Overall, the flash estimate highlights the challenges facing the euro zone and the need for policymakers to address the issues affecting economic growth. It remains to be seen how these challenges will be tackled and whether the euro zone can regain momentum in the coming quarters.
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