Eurozone GDP beats forecasts with 0.4% growth in third quarter
The EU's statistics agency said the GDP growth slowed from 0.6% in the second quarter but exceeded economists' expectations of 0.2%.
The eurozone economy expanded by 0.4% in the third quarter, surpassing official forecasts, according to data released Friday. This growth was tempered by a 0.1% contraction in France, the second-largest economy in the 21-nation single currency area, raising concerns about its fiscal health and political climate ahead of the presidential elections later in the year.
The European Union's statistics agency reported that GDP in the eurozone grew at a slower pace than in the previous quarter, when it expanded by 0.6%. Economists surveyed by Bloomberg had predicted a 0.2% increase. Despite the Middle East crisis and rising energy costs, the eurozone economy demonstrated resilience, according to Bert Colijn, chief economist at ING.
France's contraction, coupled with its already stagnant economic performance this year, has intensified worries about the country's public debt and the political tensions surrounding the upcoming presidential elections. Germany, Europe's largest economy, recorded a stronger-than-expected 0.2% growth in the third quarter, following a 0.3% increase in the second quarter.
Italy experienced no economic growth during the period, while Spain maintained its growth trajectory with a 0.6% increase in GDP.
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