Eurozone economy shows resilience despite Iran war energy shock

Summarised from 2 outlets · Updated 30 Oct, 12:29 · Archive

The eurozone economy grew 0.4% in the third quarter, outperforming expectations despite higher oil prices.

The eurozone economy grew by 0.4% in the third quarter of the year, according to figures released Friday by EU statistics agency Eurostat covering the 21 member states that use the euro currency. This outperformed market expectations of 0.2% growth. Compared to the same quarter a year earlier, the 21-country bloc grew by 1.3%.

Economists attributed the resilience to continued household and business spending despite geopolitical tensions. Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, said the data showed that 'households and businesses have not pared back their spending due to the Iran war'. Paolo Grignani, senior economist at Oxford Economics, described the eurozone economy as 'resilient amid geopolitical turmoil and a worsening inflationary environment'.

However, growth was uneven across member states. Germany, the largest eurozone economy, grew by just 0.2%, hampered by high energy prices and low river levels disrupting commerce. France contracted by 0.1%, with political deadlock over budget deficits weighing on business confidence. Inflation remains at 3.8%, above the European Central Bank's 2% target. The ECB left rates unchanged at its latest meeting but may raise them in December.

How it is being reported

• Europe's economy brushes off energy shock from Iran war, shows moderate growth in Q3Europe’s economy persevered with moderate growth in the third quarter despite higher oil prices from the US-Iran war, as gross domestic product increased by 0.4% over the quarter before.News4Jax · 30 Oct, 11:37
• Europe's economy brushes off energy shock from Iran war, shows moderate growth in Q3Europe’s economy persevered with moderate growth in the third quarter despite higher oil prices from the US-Iran war, as gross domestic product increased by 0.4% over the quarter before.Clickorlando · 30 Oct, 11:37

In this story: Eurozone · European Central Bank · Germany · France · Iran · United States · Capital Economics · Oxford Economics

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