Crucially, the bloc’s largest economy, Germany, recorded a return to growth, with gross domestic product up 0.2 percent after contracting in the previous two quarters. France’s GDP grew by the same amount, while Spain and Portugal each recorded impressive growth of 0.7 percent. The Italian economy accelerated, growing 0.3% from 0.1% in the fourth quarter of 2023.
While monthly data suggests that services are largely responsible for the recovery, recent signs of stabilization in industrial production, which had been undermined by soaring energy prices in 2022, have also contributed to the decline. reprise. German business confidence, as measured by the Ifo institute, has increased all year. Although this has not yet led to a real recovery, the Czech Republic and Hungary, two countries whose manufacturing sectors are deeply integrated with that of Germany, both reported stronger-than-expected quarterly growth on Tuesday.
“This is not a flash in the pan,” Unicredit analyst Andreas Rees writes of the German figures. “In our view, the worst is finally behind us, as rising global trade but also lower inflation rates compared to last year will likely lead to further moderate growth in the coming quarters.”
Politico
