Eurozone economy grows 0.4% in Q3

The eurozone’s gross domestic product grew by 0.4% in the third quarter of 2024 on a quarterly basis, better than analysts’ expectations.

According to Eurostat data released on Wednesday, the eurozone economy grew by 0.9% on an annual basis.

The eurozone economy grew by 0.6% and 0.2% on an annual and quarterly basis, respectively, in the second quarter.

According to CNBC, Spain recorded one of the highest growth rates in the eurozone during the third quarter, with growth of about 0.8% on a quarterly basis. Ireland saw growth of about 2%.

Germany, Europe’s largest economy, also recorded a surprise growth of about 0.2% despite expectations of a contraction.

The European Central Bank cut interest rates for the third consecutive meeting in October, after core inflation fell to 1.7% in September.

The markets had also fully priced in a 25 basis point interest rate cut at the last meeting of the year.

The chief European economist at Capital Economics said that stronger-than-expected economic growth would not prevent the European Central Bank from lowering its forecasts, pointing to a sharp interest rate cut of up to 50 basis points.