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An employee places an article in the window in a delicatessen in the Piazza Campo Di Fiori in Rome, Italy, on Tuesday, December 6, 2016.
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The economy of the euro zone saw zero growth in the fourth quarter, Flash figures published by the Statistics Agency of the European Union, Eurostat, showed Thursday.
The economists surveyed by Reuters expected a growth of 0.1% during the period, after an expansion of 0.4% higher than expected in the third quarter.
The data of the entire block are produced after the worse growth impressions of the hope of the two largest economies in the euro zone, Germany and France. Earlier on Thursday, official data showed that Germany’s gross domestic product fell 0.2% in the fourth quarterwhile the economy of France It also shrugged slightly during the same period. Italy’s economy also plans quarter to quarter, The data showed previously Thursday.
In marked contrast, the gross domestic product of Spain grew 0.8% in the fourth quarter, the country’s statistics office INE He said Wednesday.
The European Central Bank has tried to boost economic activity and investment in the euro zone. implementing four interest cuts last year. The ECB is expected to do Another adjustment of 25 bases when it meets later on Thursday To carry the key rate, the deposit installation, up to 2.75%.
Economists hope that the Central Bank will make more interest rate cuts this year, since fears on the hesitant growth Trump refer to the stubborn inflation in the block.
In December, The forecast of the Central Bank that the Economy of the euro zone grow by 1.1% in 2025Saying that he hopes that the growth of the GDP of the euro “weakens a bit in the short term, in the midst of significant uncertainty.”
“The indicators based on relevant surveys for the activity, such as the Index of Purchasing Managers (PMI) and the confidence and consumers confidence indicators of the European Commission, remain moderate,” the Central Bank said in December.
The ECB had waited for the economy to grow by 0.2% in the fourth quarter of 2024, since the unique factors that support growth last summer, such as the Paris Olympic Games, vanished and in the midst of “modern trust, High uncertainty and geopolitical tensions. ” The Central Bank anticipates that GDP growth is 0.3% in the first quarter of 2025.
The policy formulators of the Central Bank will take into account inflationary pressures in the region, with the Euro zone consumer price index in recent months, Hit 2.4% in December.
Central inflation, which eliminates volatile food and energy prices, did not change to 2.7% for fourth consecutive consecutive month. The Central Bank predicted the inflation rate in the block to reach 2.1% this year.
