Eurozone growth slows as Italian economy stagnates

Official figures indicate that economic growth in the 19 countries using the euro has slowed more than expected in the third quarter of the year.

Growth in the euro area slowed to stand at 0.2%, compared to 0.4% in the previous quarter.

The block was not helped by the performance of the Italian economy, which recorded no growth in the third quarter.

Growth in the 28 countries of the European Union fell from 0.5% to 0.3%.

The stagnation of the Italian economy comes as the new coalition government discusses with the European Commission the need for an expansionary budget to spur growth.

Claus Vistesen, Chief Economist of the Macroeconomics at the Pantheon, said: "This is a sobering figure for the new government, although we suspect it will face conflictual discussions, at least initially .

"After all, slowing growth, fiscal stimulus is more necessary than ever, or at least the argument will go to Rome."

Loss of optimism

Figures from the French statistical agency INSEE showed that the French economy had recovered strength thanks to a rebound in consumption.

It rose 0.4% in the third quarter, up from 0.2% in the previous quarter, but the rate was lower than expected, meaning the government could not meet its growth targets for the entire year. year.

In addition, the European Commission has declared that the economic climate is regressing in the euro area for the tenth consecutive month.

Its confidence level dropped to 110.8 points in October, from 110.9 in September – the biggest drop since March.