Eurozone economy grinds to a halt in Q4 2024, but activity expected to pick up in 2025

Growth in the Eurozone stalled in Q4 according to flash estimates released this morning.

This marks a weak end to last year, following positive growth in the first three quarters of 2024.

As a result, first estimates suggest that the currency bloc as a whole grew by 0.7% in 2024.

Declining activity in Germany – the Eurozone’s largest economy –  has weighed on the bloc’s growth, with German GDP contracting by 0.2% on the quarter.

This suggests Germany has now seen annual declines in activity for two consecutive years. In 2025, further loosening of monetary conditions is expected to provide a modest uptick in activity for both Germany and the Eurozone, with growth expected to amount to 0.3% and 1.0% respectively.