The Eurozone has not grown at all in 2023.

The Eurozone looks as if it has entered recession with slowdowns in the major economies shrinking GDP growth to -0.1% in Q3. Germany has a Q3 GDP growth rate of -0.4%, France was 0.7% and Italy 0.04%. These figures support the figures that indicate that the Eurozone has not grown at all in 2023.

This is not a surprise as the ECB has hiked interest rates all year and that these rate rises have weighed upon growth. The only benefit is that inflation has fallen from 4.3% in September to 2.9% in October. Analysts now feel that the ECB has finished rate rises and that rate cuts are likely in Q2 2024.

The Eurozone will still feel the impact of higher interest rates of 4.5% for a while even if inflation has fallen to 2.9% and that a period of economic stagnation can be expected. Stagnation is however better than recession.

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