The euro zone economy will likely contract slightly or, at best, stagnate in the fourth quarter, European Central Bank Vice President Luis de Guindos said on Tuesday.
“We saw a quarterly rate of -0.1% (in the third quarter), I wouldn’t draw much conclusions on that either, +0.1% or -0.1%, but it’s pretty much a stagnant situation, we think that will continue into the fourth quarter,” De Guindos said at an event in Madrid.
Euro zone economic growth was weaker than expected in the third quarter, as a preliminary estimate showed gross domestic product fell 0.1% from the previous quarter and the annual growth rate slowed sharply.
Final-quarter October Composite Purchasing Managers’ Index (PMI) data, released by S&P Global, indicates that the bloc entered the final quarter of 2023 on the back foot, with the indicator at its lowest level since the end of 2020.
At its meeting on 26 October, the ECB left interest rates unchanged, ending an unprecedented streak of 10 consecutive increases.
De Guindos said that given the current high uncertainty, the institution will continue to follow a data-dependent approach for its future monetary policy.
Source: Terra
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