The economies of the eurozone countries have avoided recession

According to preliminary data from Eurostat for the fourth quarter of 2023, the economies of the eurozone countries have avoided recession. 

In the third quarter of 2023, eurozone GDP decreased by 0.1% compared to the second quarter, but remained at 0% in the fourth quarter. To declare a technical recession, it is necessary that GDP decline for two consecutive quarters compared to the previous three months.

This is an unexpected turnaround, as economists surveyed by Bloomberg and Reuters had expected GDP to decline by 0.1% in the fourth quarter.

Nevertheless, the economic outlook for 2024 remains challenging. Declining demand and rising geopolitical tensions continue to be challenges for the eurozone.

In general, in 2023, the eurozone's GDP grew by 0.5%, which is significantly inferior to the growth of the US economy (3.1%) and China (5.2%). The German economy had the main impact on the overall result, shrinking by 0.3% in the fourth quarter due to lower investment in construction, machinery and equipment. While the French economy remained stable at 0%, Italy and Spain provided growth of 0.2% and 0.6%, respectively.