The eurozone economy expanded by 0.4% in the third quarter of 2024, according to provisional data released by the European Union’s statistics office on Wednesday.
The growth followed a 0.3% increase in the previous quarter and exceeded the 0.2% forecast by economists polled by Reuters. In particular, Spain had the highest growth rate of 0.8% quarter on quarter, while Ireland, which is known for its volatile numbers due to the strong presence of international companies, saw a 2% increase. Germany, the eurozone’s biggest economy, unexpectedly posted 0.2% growth in the third quarter as its key manufacturing sector faces difficulties, pushing the economy into a recession that some analysts had expected. Avoided.
Amid continued signs of weak economic activity in the euro area, the European Central Bank (ECB) announced at its October board meeting that it would cut interest rates for the third time in 2024 in response to September’s final headline inflation rate of 1.7%. carried out. The ECB highlighted the continued weakness in economic activity across the euro area as a key factor in its decision to cut interest rates. The market is pricing in an additional 25 basis point (bp) rate cut by the ECB at its next board meeting in December, with the deposit facility interest rate currently at 3.25%.
