The 20-nation eurozone has narrowly avoided recession after the region’s economy flatlined at the end of 2023, official figures show, Ednews reports.

Zero growth in the single currency zone in the final quarter of last year followed a 0.1% economic contraction in the third quarter, meaning that recession – defined as two consecutive quarters of contraction – was just averted. Economists polled by Reuters had expected the eurozone’s economy to shrink by 0.1% in the fourth quarter.

The eurozone’s two biggest economies both performed poorly in late 2023, with Germany contracting by 0.3% and France posting no growth for a second successive quarter, according to Eurostat, the EU’s statistical agency.

There was better news from the other two members of the eurozone’s “big four”. Italy, which had been expected to stagnate, recorded growth of 0.2%, while Spain expanded by 0.6% – three times the 0.2% forecast.

Of the smaller eurozone economies, Portugal grew by 0.8% in the final quarter, Austria expanded by 0.2%, while Ireland’s economy contracted by 0.7% – its fourth successive quarterly fall in 2023.

Eurostat said that the broader 27-nation European Union also posted no growth in the fourth quarter. From the fourth quarter of 2022 and the final quarter of 2023, the eurozone expanded by just 0.1%, while the EU grew by 0.2%.

“The eurozone economy escaped recession by the skin of its teeth by the end of 2023,” Diego Iscaro, head of Europe economics at S&P Global Market Intelligence, said. “The outlook for 2024 continues to be challenging amid faltering demand and increasing geopolitical tensions.”