The eurozone economy stagnated late last year as a lingering energy crisis sparked a loss of competitiveness in some European industries, and consumers reined in spending to grapple with high living costs, Europe’s statistics agency reported Tuesday.
But economists believe the worst may be over, as the European Central Bank continues its campaign to wring out inflation without plunging the eurozone economy into a deep downturn.
Compared with a year ago, the eurozone grew by just 0.1 percent.
The anemic pace is keeping Europe far behind the United States, where the economy, although slowing from a breakneck growth pace, continues to be powered by consumer spending.
Aggressive interest rate increases by the Federal Reserve have brought a slowdown in inflation, and the Fed is expected to begin unwinding those increases soon.
Organizations:
European Central Bank, Federal Reserve
Locations:
Europe, United States