MNI BRIEF: Eurozone Economy Slows In Q4, Records No Growth
MNI (LONDON) - The euro area saw no growth in the fourth quarter of 2024, according to a preliminary release from Eurostat which will confirm European Central Bank policymakers' concerns ahead of a probable rate cut later on Thursday.
In the year to December, the economy expanded by 0.9% q/q, unchanged on the level seen in Q3. Spain and Lithuania led the growth table, at 3.5% y/y and 3.6% y/y, respectively, whilst at the other end of the spectrum, Germany contracted 0.2% and the volatile Irish reading contracted 1.3%.
The slowing growth profile was largely in line with expectations of policymakers and is unlikely to change too many views around the Governing Council table, where a 25bp cut later Thursday seems assured. (see MNI SOURCES: ECB Cuts Consensus, But Trump, Fiscal Risks Ahead )