The flash data were unrevised in the third look at the fourth quarter economy. Following a 0.1 percent dip in the previous period, confirmation of a zero quarterly change means that the Eurozone just about managed to avoid recession. Even so, with annual growth also left at just 0.1 percent, to all intents and purposes, the economy has only flatlined since the third quarter of 2022.

Stagnation last quarter reflected a minimal 0.1 percent rise in household spending and more marked gains in gross fixed capital formation (1.0 percent) and government consumption (0.6 percent) offset by a decline in inventory accumulation (minus 0.1 percentage point) and a 0.3 percentage point hit from net foreign trade. Exports were flat while imports were up 0.6 percent.

As shown in the flash report, there were some sharp divergences between the individual member states. Hence, contractions in Lithuania (0.1 percent), Germany (0.3 percent), Estonia and Finland (both 0.7 percent) and Ireland (3.4 percent) contrasted with solid gains in Slovenia (1.1 percent), Latvia and Portugal (both 0.8 percent) and Cyprus and Spain (both 0.6 percent). France edged up 0.1 percent and Italy again expanded 0.2 percent.

In sum, while a solid increase in fixed investment is good news for medium-term Eurozone growth, the updated fourth quarter data simply re-affirm a pretty miserable end to 2023. However, with the region's RPI at 26 and the RPI-P at 30, recent overall economic activity has at least outperformed market expectations by some distance.

No revisions are expected leaving zero quarterly growth and an annual rise of just 0.1 percent.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy and is usually released early in the third month after the reference period. Following two provisional (flash) estimates containing only limited information, this report provides the first full look at the national accounts for the region.

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 a treasure-trove of 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, and price (inflation) indexes 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 anemic 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 typically lead to increased demand for a local currency. However, inflationary pressures can put downside pressure on a currency regardless of growth. For example, if inflation remains above the ECB’s near-2 percent target for long enough, worries about the impact of lost competitiveness on the merchandise trade balance could prompt investors to switch to an alternative currency.