Eurozone economy stagnates, better times ahead?

Eurozone GDP growth stalled in the final quarter 2024. The economies of Germany and France both shrank, Italian GDP was flat, and Spain outperformed again with a growth rate of 0.8% q/q. Surveys suggest that activity growth was muted at the start of the year, but we do think growth will accelerate somewhat in 2025 compared to 2024. Our forecast of about 1% GDP growth this year largely hinges on a pickup in consumption.