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Euro zone Q3 GDP growth weaker than expected

Published 10/31/2023, 06:02 AM
Updated 10/31/2023, 09:21 AM
© Reuters. FILE PHOTO: People walk on a shopping street in the southern German town of Konstanz January 17, 2015.REUTERS/Arnd Wiegmann/File Photo

BRUSSELS (Reuters) - Euro zone economic growth was weaker than expected in the third quarter, a flash estimate showed on Tuesday, with gross domestic product contracting slightly quarter-on-quarter and the year-on-year growth rate slowing sharply.

The European Union's statistics office Eurostat said GDP in the 20 countries sharing the euro fell 0.1% quarter-on-quarter in the July-September period for a 0.1% year-on-year rise.

Economists polled by Reuters had expected a 0.0% quarterly growth and a 0.2% year-on-year gain.

© Reuters. Shoppers buy fruit at a local market in Nice, France, June 8, 2023. REUTERS/Eric Gaillard

Eurostat data showed 0.1% quarterly growth in France, 0.3% in Spain and 0.5% in Belgium, but that failed to offset a 0.1% quarterly slump in Germany, no growth in Italy, and contractions in Austria, Portugal, Ireland, Estonia and Lithuania.

The euro zone economy is facing strong headwinds from high inflation and record high interest rates and slowly tightening fiscal policy.

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