Eurozone GDP ends 2023 unchanged

The eurozone economy was little changed at the end of 2023, official data showed on Friday, allowing it to narrowly skirt recession.

According to Eurostat, the statistical office of the European Union, seasonally-adjusted GDP was unchanged in both the eurozone and wider bloc, in line with expectations.

In the third quarter, eurozone GDP fell by 0.1% and was unchanged at 0.0% across the EU.

A recession is technically defined as two consecutive quarters of negative growth.

Year-on-year, GDP increased by 0.1% in the eurozone and by 0.2% in the wider bloc.

Within individual member states, GDP fell 0.3% month-on-month in Germany, the EU’s biggest economy.

In contrast, it rose by 0.6% in Spain, 0.1% in France and 0.2% in Italy.

For the year as a whole, GDP edged up 0.4% in both the eurozone and EU.

Eurostat also posted unemployment data on Friday showing the number of employed persons increased by 0.3% in the eurozone and by 0.2% in the EU quarter-on-quarter. Year-on-year, employment rose by 1.2% and by 1% in wider bloc.

Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said: "GDP went nowhere last year.

"Today’s data also showed that the fall in productivity is abating somewhat. Admittedly hours worked increased by just 0.1% quarter-on-quarter, after a 0.1% fall in the third quarter.

"But a simple estimate in annual terms shows productivity fall by 1.1% in year-over year terms last quarter.

"Looking ahead, we think productivity will pick up, as labour hoarding practices reverse, offsetting a slight slowdown in employment growth, such that GDP growth picks up. We think consumers spending growth will pick up as real income growth recovers. But the ECB tightening cycle last year will continue to weigh on investment."