The Eurozone’s GDP growth rate increased in the third quarter of 2024. It rose to 0.4%, according to Eurostat. This growth aligns with analyst forecasts and is up from 0.2% in the second quarter. It marks the strongest growth seen in the last two years.

The increase was driven mainly by a rise in household spending. Government spending and higher inventory levels also supported the GDP growth. However, net trade slightly limited the gains. Imports rose by 0.2%, while exports fell by 1.5%.

On a year-on-year basis, the Eurozone’s GDP grew by 0.9%. This is higher than the previous quarter’s 0.5% and in line with market expectations.

German and Spanish Economic Trends

Germany’s economy grew by 0.1% in the third quarter. This fell short of the expected 0.2% but helped the nation avoid recession. Germany continues to face challenges such as weaker competitiveness, falling consumer confidence, and higher energy costs.

The Netherlands saw its economy contract by 0.8%, down from 1.1% in the previous quarter. This was primarily due to lower export growth and tight labor markets.

Similarly, Italy faced challenges with falling net exports, a weakening manufacturing sector, and reduced consumer confidence. However, Spain’s economy showed resilience, growing by 0.8% for the third consecutive quarter. This growth was supported by strong labor market conditions, robust consumption, and steady tourism numbers.

France’s economy also grew by 0.4% in the third quarter.