The economy of the European Union also stabilized

The euro area’s GDP in October-December 2023 remained unchanged compared to July-September 2023. Compared to the fourth quarter of 2022, the euro area economy grew by 0.1%. This is evidenced by preliminary data from Eurostat.

On average, analysts predicted that the eurozone’s GDP in the fourth quarter would decrease by 0.1% q/q and remain unchanged y/y.

The EU economy in the fourth quarter of 2023 also remained stable compared to the previous quarter. In annual terms, EU GDP grew by 0.2% in the fourth quarter.

Germany’s GDP in October-December decreased by 0.3% q/q and 0.2% y/y. France’s GDP remained unchanged q/q and grew by 0.7% y/y, Italy’s grew by 0.2% q/q and 0.5% y/y. Spain’s economy grew by 0.6% q/q and 2% y/y.

According to the revised data, in July-September 2023, the euro area and the EU economy contracted by 0.1% quarter-on-quarter and remained unchanged y/y.

The European Commission has downgraded its growth forecast for the eurozone economy in 2023 and 2024, as inflation is still too high, consumer spending is declining, and Germany, the region’s largest economy, is slipping into recession. Eurozone GDP is expected to grow by 0.8% in 2023 and by 1.3% in 2024. These figures are lower than the May forecasts of 1.1% and 1.6%, respectively.

As GMK Center reported earlier, seasonally adjusted industrial production in the eurozone in November 2023 decreased by 0.3% compared to the previous month. In the EU, the figure decreased by 0.2% m/m. Compared to November 2022, industrial production in the euro area fell by 6.8%, in the EU – by 5.8%.

In December 2023, inflation in the euro area rose by 2.9% y/y, accelerating from 2.4% in November. Thus, inflation in Europe increased for the first time since April 2023.