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The Eurozone economy unexpectedly stagnated in the fourth quarter, ratcheting up the pressure on the European Central Bank to cut interest rates more aggressively.
The lack of growth in the quarter compared with the 0.1 per cent expansion forecast by economists polled by Reuters and 0.4 per cent growth in the third quarter.
For 2024, the Eurozone economy expanded 0.7 per cent, according to data released by Eurostat on Thursday.
The figures come just hours before the ECB is expected to cut its benchmark interest rate by a quarter-point to 2.75 per cent, the lowest level since early 2023.
The stagnation also underlines the challenge facing the region as Germany, the Eurozone’s biggest economy, struggles with a severe manufacturing downturn.
Germany GDP contracted by 0.2 per cent in the final quarter while France’s economy unexpectedly shrank by 0.1 per cent. Output was flat in Italy.
This is a developing story
