Euro Area Economy Grows, But Stagnates in Final Quarter of 2024
The euro area economy expanded by 0.7% in 2024, exceeding the previous year’s growth rate but ending the year with a stagnant GDP in the final quarter, according to preliminary estimates released by Eurostat.
While this growth represents a positive trend, it falls short of the European Commission’s predictions, which forecast a 0.8% expansion for the euro area and 0.9% for the entire european Union.
The slowdown in the final quarter of 2024 can be attributed to a general economic brake across both the euro area and the EU. Both regions experienced a growth of 0.4% in the third quarter, which was significantly diluted in the euro area and lost three tenths in the EU.
Germany,frequently enough considered the economic powerhouse of the continent,experienced a notable decline with a 0.2% drop in GDP. France also saw a decrease of one tenth, while Italy remained stagnant with a 0% growth rate.
In contrast, Spain demonstrated resilience, closing 2024 with a quarterly growth of 0.8%, ranking third among the twelve countries for which Eurostat provides data.
Portugal led the way in the fourth quarter with a robust 1.5% growth, followed by Lithuania at 0.9%, Spain at 0.8%, and Hungary at 0.5%. Sweden and Belgium saw modest growth of 0.2%, while Estonia experienced a slight setback of 0.1%. Austria and Italy remained flat, while Ireland suffered the largest decline with a 1.3% drop in GDP.
Looking at the full year,Lithuania recorded the highest expansion at 3.6%, followed by spain at 3.5%, Portugal at 2.7%, and Ireland at 2.5%. Sweden and Belgium lagged behind with 1.1% growth, while France, Italy, and Hungary saw more modest increases of 0.7%, 0.5%, and 0.2% respectively. Germany and Estonia were the only two countries to experiance negative growth in the last quarter of 2024,with drops of 0.2% and 0.1% respectively.
Euro Area Economic Growth Stumbles in Final Quarter 2024: An Expert Insight
Time.news Editor: Welcome, Dr. [Expert Name]. Thank you for joining us to discuss this latest Eurostat report on Eurozone growth. We’re seeing an captivating situation – overall growth for 2024 reached 0.7%, exceeding 2023’s figure, but the final quarter ended with stagnation. Could you shed some light on what might be driving this trend?
Dr. [Expert Name]: Certainly. While 0.7% growth is positive the stagnant Q4 paints a slightly concerning picture. Several factors likely contributed to this slowdown. Firstly,we saw a general economic cooling across both the euro area and the EU in the latter half of the year,a trend reflected in the significant reduction in growth rates.
Time.news Editor: We’ve also seen some significant variances between individual Eurozone countries. Germany, frequently enough considered the economic powerhouse, experienced a notable decline. What’s behind this shift?
Dr. [Expert Name]: Yes, Germany’s 0.2% GDP drop is noteworthy. This highlights the ripple effect of global economic uncertainties. Germany’s strong export-oriented economy is notably sensitive to fluctuations in international demand, and recent global headwinds likely played a role.
Time.news Editor: Conversely, we have Spain showcasing resilience with a 0.8% growth in Q4 2024. What factors might be contributing to Spain’s relative strength?
Dr. [Expert Name]: Spain has benefited from a thriving tourism sector and strong domestic demand. While external factors play a role, Spain’s economic diversification and focus on internal consumption have likely cushioned some of the negative impacts experienced by other countries.
Time.news Editor: Given this complex picture, what advice would you give to businesses and individuals operating within the eurozone?
Dr. [Expert Name]: In this environment of uncertainty, businesses should focus on building resilience through cost optimization, supply chain diversification, and innovation.Individuals can prepare by being mindful of their spending, exploring opportunities for upskilling, and staying informed about economic developments.
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