The eurozone economy exceeded expectations during Q1 2024 and grew 0.3 percent quarterly in both the euro area and the European Union (E.U.), according to the latest data from Eurostat, the statistical office of the E.U. Markets had previously expected both to expand by 0.2 percent. The economic growth of Germany, Spain and Ireland propelled the eurozone’s economic growth during Q1.
Meanwhile, Eurostat, in a separate data release, forecast inflation to remain stable at 2.4 percent in April 2024 compared to March.
The statistical office expects services to have the highest inflation rate of 3.7 percent in April. Moreover, it expects inflation in food, alcohol and tobacco prices to reach 2.8 percent and inflation in non-energy industrial goods to decline to 0.9 percent.
In Q4 of 2023, the eurozone economy saw a 0.1 percent decline and remained stable in the E.U. Compared to Q1 of 2023, the eurozone’s economy expanded 0.4 percent and the E.U’s economy expanded 0.5 percent. This comes following a 0.1 percent increase in the eurozone and a 0.2 percent in the EU in the previous quarter.
Read: Eurozone lending stagnates in March, ECB rate stance deters borrowers, lenders
Among the member states, Ireland saw the largest quarterly economic expansion of 1.1 percent. Following closely came Latvia, Lithuania and Hungary, which all saw a 0.8 increase. Meanwhile, Spain and Germany saw a 0.7 percent and 0.2 percent increase, respectively.
However, Sweden was the only member state that saw a quarterly decline of -0.1 percent. Eurostat revealed that economic growth rates were positive for nine countries and negative for four.
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