Economics

Europe’s Economy Surprises at End of Pandemic Year: GDP Update

  • Virus curbs still mean euro area might not avoid double dip
  • ECB’s Makhlouf sees no need for rate cuts at the moment
Photographer: Benjamin Girette/Bloomberg
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Three of the euro area’s four largest economies rounded off the pandemic year suggesting the region can avoid a deeper recession, while still facing headwinds from extended coronavirus lockdowns.

Gross domestic product in Spain unexpectedly increased 0.4%, defying expectations for a 1.4% drop. In another surprise, Germany also recorded growth, while output in France fell less-than-forecast after consumer spending rebounded sharply in December.