People walk down the iconic Alcalá street on a very hot afternoon in Madrid, Spain.
Miguel Pereira | Getty Images News | Getty Images
The euro zone economy grew 0.4% in the third quarter, flash figures published by the European Union’s statistics agency showed Wednesday.
Economists polled by Reuters had expected growth of 0.2%. following the bloc’s 0.3% expansion in the second quarter.
Analysts say euro zone growth should cautiously pick up in the coming months, amid lower interest rates and cooling inflation.
The European Central Bank cut rates for the third time this year at its October meeting, after headline inflation came in at 1.7% in September, according to a final reading. The ECB cited persistent signs of weak activity in the euro area as a key factor in the central bank’s decision to enact an October cut.
Markets have fully priced another 25-basis-point cut from the ECB in its last meeting of the year in December.
The euro zone’s biggest economy, Germany, recorded surprise growth of 0.2% in the third quarter, according to figures published on Wednesday. That allowed the country to avoid the recession that had been forecast by some economists.
This is a breaking news story and will be updated shortly.