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Eurozone GDP stats confirm Q3 gloom but Germany's ZEW survey points to a more positive outlook

Latest figures show the Eurozone economy remained in the doldrums in Q3. But an upbeat ZEW economic survey raises hopes that Germany could avoid recession.

14 November 2023

The second reading of third quarter GDP for the Eurozone matched the preliminary estimate (or flash estimate) of two weeks ago, showing that broad growth across the euro area was down 0.1% over the quarter. The majority of countries in the region hovered around the no-growth baseline but notable exceptions were in Austria (-0.6%), Finland (-0.9%) and Ireland (-1.8%), while the Spanish economy grew by 0.3% during the quarter.

Market reaction in the Euro currency was more upbeat following Germany’s ZEW economic sentiment indicator release which swung into positive territory. The expectation amongst institutional investors has clearly moved to a more optimistic outlook for Europe’s largest economy – so there is one positive forward-looking measure offsetting one negative backward-looking GDP print.

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Charles Hepworth

Investment Director
My Insights

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