Eurozone growth surpasses expectations, reinforcing ECB’s cautious stance

The Eurozone economy expanded by 0.2% quarter-on-quarter in Q3, slightly surpassing expectations of 0.1% .

Growth was largely supported by strong performances in Spain and France, with growth in the two economies amounting to 0.6% and 0.5%, respectively.

However, the bloc’s wider struggles are apparent amidst a stagnation of the German and Italian economies, both of whom narrowly avoided technical recessions.

More broadly however, today’s data reinforces improved growth prospects for the currency bloc, and with inflationary pressures still lingering, the European Central Bank is likely to maintain its cautious stance, further reducing the likelihood of monetary loosening in the near-term. Cebr expects Eurozone growth to stand at 1.2% in 2025.