According to Eurostat, Ireland topped the Eurozone’s GDP table, with a quarterly growth of 2.0%. Cyprus and Lithuania joined Ireland in the top three, with their economies seeing growth of 1.0% and 1.1%, respectively. In contrast, Italy’s economy stalled, and Latvia’s GDP contracted by 0.4%.
The GDP numbers provided some optimism, and the labor market data could also ease immediate concerns about private consumption and the economic outlook.
Employment across the Eurozone increased by 0.2% quarter-on-quarter in Q3 2024 after a 0.2% rise in Q2 2024. However, the employment data may offer short-lived comfort if Trump imposes tariffs on Eurozone goods. Tariffs on Eurozone goods could dampen demand, weaken the labor market, and curb private consumption, which accounts for over 50% of the Eurozone GDP.
