Eurozone economy unexpectedly stagnates in fourth quarter

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In the fourth quarter, the Eurozone economy was unexpectedly stalled by the European central bank to further reduce interest rates on the European central bank.

The lack of this marginal growth is compared to the forecast for 0.1 percent by the economists studied by Reuters and 0.4 percent growth in the third quarter.

For 2024, the Eurozone economy According to data published on Thursday, 0.7 percent expanded.

The ECB is expected to increase its benchmark interest rate to a quarter-point 2.7575 percent, the lowest level from early 2021.

“The economic potential of this region is worse than most thoughts,” said Jack Allen-Reynolds of Capital Economics. “We hope it will require the ECB to lower interest rates this year rather than a discount on the market.”

This stagnation also underlines the challenges that fight the eurozone’s largest economy, as Germany, fighting the deadly production downturn.

German GDP has signed a contract of 0.2 percent in the final three months of 2021, and France’s economy has unexpectedly decreased by 0.1 percent. The output was flat in Italy.

Following the data, traders have increased the Bet to reduce the rate of ECB four times this year this year.

The Euro, which has been weakened in the US and European interest rates in recent months, weakened, slightly changed to $ 1.041.

The degraded image of the Eurozone is contradictory with the United States, which the IMF forecast will increase by 2.7 percent this year, close to its speed in 2021. The US Federal Reserve has kept interest rates on Wednesday.