The European economy is fighting hard to stay afloat, and the latest figures show that its efforts are paying off. According to Eurostat, the eurozone's gross domestic product grew by 0.4% from July to September 2024, reflecting an uptick in economic momentum compared to the previous quarter. On an annual basis, the preliminary estimate points to an expansion of 0.9% for the region, beating analysts' expectations.
Among Europe’s largest economies, Germany's GDP rose by 0.2% quarter-on-quarter, France saw a 0.4% increase, while Spain reported a robust expansion of 0.8%. Italy, however, showed no change over the period.
Forecasts from experts polled by Trading Economics had expected the European economy to grow by 0.2% from the previous quarter and 0.8% compared to the same period of the previous year, making Eurostat's final figures twice as strong as expected.
The second quarter of 2024 also showed positive trends, with the bloc’s economy expanding by 0.2% quarter-on-quarter and 0.6% year-on-year. While the numbers are encouraging, former ECB President Mario Draghi has sounded a note of caution. He urged EU leaders to adopt immediate measures to boost economic growth. Draghi warned that ignoring the challenges at hand could plunge the region into a prolonged stagnation.
The official cited expert projections suggesting that the region’s labor force could shrink by nearly 2 million workers each year through 2040. He also expressed concern about high energy prices in Europe, which are significantly higher than those in the United States and pose an "existential challenge" to the European economy. In this case, EU leaders could soon face a crucial choice between retaining technological leadership and maintaining their position as a "beacon of climate responsibility," Draghi added.
