Eurozone Growth Momentum Weakens as Q4 GDP Growth Rate Revised Downward Last Year

Golden Ten Data reported on March 6 that at the end of last year, economic growth in the eurozone was weaker than initially reported, with trade factors dragging down the growth rate. Eurostat stated on Friday that the gross domestic product in the fourth quarter grew by 0.2% quarter-on-quarter, lower than the initial estimate of 0.3%. Household consumption made the largest positive contribution, while public spending and investment also provided some support. Whether this 21-country currency union can maintain growth now depends on the development of the situation in Iran. Attacks by the United States and Israel have already caused energy prices to soar, and the market is concerned that inflation may rise again and suppress economic activity, which will largely depend on how long the conflict lasts. Since the United States launched military action against Iran, several policymakers who have spoken believe it is still too early to determine its impact on the economy. Bundesbank President Nagel believes that the impact on inflation is more worthy of attention than the impact on growth, and the European Central Bank will decide what action to take at its meeting in two weeks.