Euro zone economy grows 0.4% in third quarter, above expectations

The euro portion system grew 0.4% successful the 3rd quarter, flash figures published by the European Union's statistic bureau showed Wednesday.

Economists polled by Reuters had expected maturation of 0.2%. pursuing the bloc's 0.3% expansion successful the 2nd quarter.

Spain recorded 1 of the highest maturation rates, expanding 0.8% connected the erstwhile quarter, arsenic Ireland — which mostly records volatile figures owed to the precocious proportionality of planetary corporations stationed determination — roseate 2%.

The euro zone's biggest economy, Germany, recorded a astonishment maturation of 0.2% successful the 3rd quarter. That allowed Europe's largest system to debar the recession that had been forecast by immoderate economists, arsenic it struggles with a downturn successful its cardinal manufacturing sector.

"Although a method recession was avoided, the German system remains hardly larger than it was astatine the commencement of the pandemic," analysts astatine ING said successful a Wednesday note, calling the federation a "magnet for antagonistic macro news."

Analysts say euro portion business enactment and user assurance should cautiously prime up successful the coming months, amid little involvement rates and cooling inflation.

The European Central Bank cut rates for the 3rd clip this year astatine its October meeting, aft header ostentation came successful at 1.7% successful September, according to a last reading. The ECB cited persistent signs of anemic enactment successful the euro country arsenic a cardinal origin successful the cardinal bank's determination to enact an October cut.

Markets person afloat priced different 25-basis-point chopped from the ECB successful its past gathering of the twelvemonth successful December.