Europe’s economy stagnated at the end of last year as its former growth engine, Germany, finished a second straight year of shrinking output, officials said Thursday. Gross domestic product was flat with a zero increase in the final quarter of 2024 in the 20-nation eurozone,

Eurozone GDP stagnated in Q4 2024 as Germany (-0.2%) and France (-0.1%) contracted, reinforcing expectations of more ECB rate cuts. The euro held at $1.04, while bond yields fell. The ECB-Fed policy gap widens as Powell signals "no rush" for rate cuts.

Germany's government has slashed its 2025 growth forecast for the country’s economy, Europe’s biggest, to just 0.3% after it shrank for two consecutive years.