Preliminary data released on Tuesday by Eurostat revealed that the economy in both the Eurozone and the EU remained stable in the last three months of 2023 compared to the previous quarter, a performance that beat expectations.

Economists have predicted a 0,1% decline based on “elevated interest rates, flimsy foreign demand and heightened geopolitical tensions,” according to Bloomberg. However, while “Germany remains the weak spot,” the economies in Spain and Italy beat expectations.

Source: Eurostat, graphic by EMBA Power

The highest increase was recorded in Portugal (+0,8%) followed by Spain (+0,6%). Small increases were recorded in six countries while growth rates were negative in five countries with Ireland leading the way with -0,7% followed by Germany with -0,3%. 

Looking forward, economists are expecting the eurozone economy to rebound slightly this year. “No sharp rebound in growth is expected, however, and we do not expect growth to gain momentum and rise above the trend growth rate until around the end of the year,” according to ABN AMRO.

Eurostat estimates for the fourth quarter of 2023, including data from other European economies, will be released on February 14.