As expected, the flash data showed fourth quarter growth unchanged from the preliminary report. A 0.1 percent quarterly increase in GDP matched last month's estimate and remains 0.2 percentage points short of the previous period's rate. Accordingly, it was the weakest performance since the first quarter of 2021. Annual growth slowed from 2.3 percent to 1.9 percent, also unrevised and its worst print since the start of 2021.

There are still no GDP expenditure components available in today's update but national growth rates amongst the larger four members were unchanged from their initial estimates. This left contractions in both Germany (0.2 percent) and Italy (0.1 percent) and modest gains in both France (0.1 percent) and Spain (0.2 percent. Elsewhere, Ireland (3.5 percent) had a very good quarter but there were sizeable falls in Lithuania (1.7 percent) and Austria (0.7 percent). Finland (minus 0.2 percent) slipped into recession, the only country to do so and reflecting the disproportionately large fallout from the war in Ukraine.

Today's data leave the Eurozone potentially on course to avoid recession in 2023. That said, near-term growth prospects remain insipid at best and another spike in energy prices could yet induce a new downturn. However, at 6 and minus 10 respectively, the region's ECDI and ECDI-P continue to signal that overall economic activity is running broadly in line with market expectations.

No revisions are expected to the preliminary flash data.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. There are two preliminary estimates which are based on only partial data. The first is the preliminary flash, introduced in April 2016 and limited to just quarterly and annual growth statistics for the region as a whole. This is issued close to the end of the month immediately after the reference period. The second flash report, released about two weeks later, expands on the first to include growth figures for most member states but still provides no information on the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data, which follow the international classification system (SNA93), are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anaemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower. Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth.