Preliminary data from Eurostat reveals that the Eurozone's GDP grew by 0.4% quarter-on-quarter in the third quarter after seasonal adjustments, while the GDP of the European Union (EU) increased by 0.3%. Both the Eurozone and EU GDP showed a year-on-year rise of 0.9% during this period.
In the second quarter, the Eurozone's GDP grew by 0.6% year-on-year, with the EU's GDP increasing by 0.8%. Although the third quarter figures were slightly better than anticipated, overall performance for the year remains below expectations.
A look at individual countries shows that Germany, the EU's largest economy, experienced a GDP growth of 0.2%. Meanwhile, France and Spain saw GDP increases of 0.4% and 0.8%, respectively. Ireland reported a significant GDP growth of 2.0%, whereas Hungary's GDP contracted by 0.7%.
The Munich-based economic research institute noted that Germany's economic growth is primarily hindered by poor performance in the industrial sector, exacerbated by sluggish domestic demand and declining corporate competitiveness. ING's Head of Macro Research, Carsten Brzeski, commented that Germany's unexpected economic growth in the third quarter helped avoid a technical recession, but the overall stagnation persists.
