Europe's economy showed zero growth at end of 2024 as eurozone's biggest economy Germany struggled Europe’s economy stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output, officials said Thursday.
The economy slowed from 0.4% growth in the third quarter as businesses were unsettled by possible trade disruptions under the new administration of U.S. President Donald Trump and as consumers remained cautious with spending after being stung by inflation.
Germany’s confusion could clear up after a national election on Feb. 23 following the collapse of Social Democratic Chancellor Olaf Scholz’ governing coalition that had been mired in months of bickering over what to do about the economy.
The German economy, Europe's largest, also shrank for all of 2024 by 0.2%, the second straight year of declining output.
Leading economies Germany and France are both unsettled by political turmoil that has left businesses and consumers uncertain about what the future holds in terms of government spending, regulation and taxes.
