ECB rate cuts needed 'sooner rather than later' as GDP flatlines

Q4 eurozone growth at 0%

Cristian Angeloni
clock • 2 min read

Economic growth in the eurozone stagnated in the last quarter of 2023, following a 0.1% contraction in third quarter, according to data from Eurostat today (30 January).

The figure beat expectations, as forecasts expected negative growth at the same level of Q3, meaning the area has managed to avoid a technical recession for the second half of 2023, noted Clemente De Lucia, senior European economist at Deutsche Bank Research. However, he highlighted weak domestic demand over the quarter alongside easing support from fiscal measures and rising uncertainty, which indicate "GDP growth could remain subdued in the first quarter of 2024". Yet Michael Field, European market strategist at Morningstar, said it is not all "doom and gloom" in the eurozone, as in...

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