The eurozone has narrowly avoided recession after the region’s economy flatlined at the end of 2023, The Guardian reports, citing quarterly figures from Eurostat. Zero growth in the single currency zone in the final quarter of last year followed a 0.1% economic contraction in the third quarter, meaning that recession, defined as two consecutive quarters of contraction – was just averted. Economists polled by Reuters had expected the eurozone’s economy to shrink by 0.1% in the fourth quarter. Eurostat said that the broader 27-nation European Union also posted no growth in the fourth quarter. From the fourth quarter of 2022 and the final quarter of 2023, the eurozone expanded by 0.1%, while the EU grew by 0.2%.

The eurozone’s two biggest economies both performed poorly in late 2023, with Germany contracting by 0.3% and France posting no growth for a second successive quarter, according to Eurostat. Meanwhile, Italy, which had been expected to stagnate, recorded growth of 0.2%, while Spain expanded by 0.6% – three times the 0.2% forecast. Of the smaller eurozone economies, Portugal grew by 0.8% in the final quarter, Austria expanded by 0.2%, while Ireland’s economy contracted by 0.7% – its fourth successive quarterly fall in 2023.

Eurostat said that the broader 27-nation European Union also posted no growth in the fourth quarter. From the fourth quarter of 2022 and the final quarter of 2023, the eurozone expanded by just 0.1%, while the EU grew by 0.2%.