Euro Zone Economic Update

FRANKFURT (Reuters) – The euro zone economy grew slightly faster than initially thought in Q4 2024, but employment growth remained minimal, indicating broader stagnation in the 20 euro-sharing countries.

Key Highlights

• GDP Growth: Euro zone GDP rose by 0.1% in the fourth quarter, a revision from earlier estimates indicating stagnation.
• Yearly Comparison: The economy expanded by 0.9% year-on-year, consistent with the previous quarter, but showing modest improvement from earlier periods.
• Employment Growth: Employment saw a slight increase of 0.1% compared to the previous quarter, continuing a downward trend since early 2022.
• Future Projections: Slight economic growth is anticipated, projected just above 1% for 2025, although this outlook carries potential risks.
• Economic Concerns: Consumption growth is minimal, the labor market is soft, industry faces recession, U.S. tariff threats affect investment, and soaring energy prices due to natural gas costs are expected to prolong economic stagnation, according to economists.