FRANKFURT, Tuesday, May 7, 2024 – Europe’s main economies emerged from a shallow recession in the first quarter of 2024, exceeding expectations with modest growth. The positive signs follow a year of virtual stagnation, a Bloomberg news report said. 1
According to figures released Tuesday April 30, by Eurostat, the European Union’s statistical agency, the eurozone economy expanded by 0.3% compared to the previous three months.
This marks the strongest performance since the third quarter of 2022 and surpasses the 0.1% contraction observed in the final two quarters of 2023.
The data reveals a broad-based recovery, with all of the eurozone’s four largest economies – Germany, France, Spain, and Italy—registering better-than-anticipated growth in the first quarter.
This suggests that the bloc’s economic resilience is stronger than previously thought.
Analysts attribute the improved performance partly to receding inflationary pressures, which eased the burden on consumers.
Additionally, the previously stagnant German economy showed signs of modest revival, further bolstering the eurozone’s overall outlook.
However, some economists cautioned that it’s still early to declare a definitive turnaround. The war in Ukraine and ongoing global economic headwinds continue to pose significant risks to Europe’s growth trajectory, they say.
Meanwhile, in the UK the housing market appeared to be defying concerns about rising mortgage rates. Mortgage approvals in the UK reached an 18-month high, signaling positive momentum despite predictions of a future slowdown.
On the other hand the US housing market also continued to show resilience, with home prices remaining on a steady rise despite increased mortgage costs.
In addition wage growth in the US showed a steady progress, which could influence the Federal Reserve’s decisions regarding interest rates.
However, Canada’s GDP growth in February fell short of expectations, with services-producing industries leading the charge while goods-producing sectors exhibited mixed performance.
The UK’s FTSE 100 index climbed to new highs, driven by strong corporate earnings even in the face of mixed economic data from China.
McDonald’s global sales witnessed a only a moderate increase, although they fell short of expectations due to ongoing challenges in the Middle East, according to a report file by Guardian. 2
On the Corporate front, Anglo American rejected a takeover proposal from BHP, underscoring its confidence in its standalone strategy and commitment to shareholders.
Haleon announced the closure of a manufacturing site in Berkshire as part of a global operations review, impacting hundreds of jobs.
- Europe’s Major Economies: https://www.bloomberg.com/news/articles/2024-04-30/europe-gdp-latest-france-grows-in-hope-region-out-of-recession[↩]
- Europe’s Major Economies: https://www.theguardian.com/business/live/2024/apr/30/eurozone-gdp-growth-recession-france-germany-italy-spain-inflation-cost-of-living-brexit-checks-business-live[↩]
