Euro zone growth beats projections again
SPY•Euro zone GDP grew 0.4% in the third quarter, above the 0.2% expected, while year-over-year growth was 1.3%, above forecasts of 1.1%.
1. Growth tops forecasts
The euro zone economy grew 0.4% in the third quarter, slowing from 0.6% in the second quarter but beating expectations of 0.2%. GDP was up 1.3% from a year earlier, above forecasts of 1.1%. Germany grew 0.2% quarter over quarter, Spain and the Netherlands each grew 0.6%, Italy was unchanged and France contracted 0.1%.
2. Risks to outlook
Investment supported by spending on AI, defence and infrastructure, foreign demand and household consumption helped the bloc outperform. Ireland’s 5.5% quarterly growth lifted the euro zone figure. The article said higher borrowing costs and renewed energy price increases could weigh on growth, and the European Central Bank may raise rates again, possibly as soon as December.
