Eurozone narrowly avoids recession as German economy shrinks

A euro sign in Frankfurt, Germany. GDP across the single-currency zone fell by 0.1% in the final three months of 2023, according to Eurostat. Photograph: Xinhua/Rex/Shutterstock

The 20-nation eurozone has narrowly avoided recession after the region’s economy flatlined at the end of 2023, official figures show.

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.