Euro zone economic growth was weaker than expected in the third quarter, a flash estimate showed on Tuesday, with gross domestic product contracting slightly quarter-on-quarter and the year-on-year growth rate slowing sharply.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The European Union's statistics office Eurostat said GDP in the 20 countries sharing the euro fell 0.1 per cent quarter-on-quarter in the July-September period for a 0.1 per cent year-on-year rise.

Economists polled by Reuters had expected a 0.0 per cent quarterly growth and a 0.2 per cent year-on-year gain.

Eurostat data showed 0.1 per cent quarterly growth in France, 0.3 per cent in Spain and 0.5 per cent in Belgium, but that failed to offset a 0.1 per cent quarterly slump in Germany, no growth in Italy, and contractions in Austria, Portugal, Ireland, Estonia and Lithuania.

The euro zone economy is facing strong headwinds from high inflation and record high interest rates and slowly tightening fiscal policy.