The eurozone economy is set for only modest growth next year despite wages rising faster than inflation for the first time in three years, according to a Financial Times poll of economists.
Almost two-thirds of the 48 economists surveyed by the FT said they believed the single currency bloc was already in a recession — usually defined as two consecutive quarters of gross domestic product shrinking from the previous quarter.
“We would not describe this as a fully fledged recession; instead we would still characterise this as stagnation,” said Paul Hollingsworth, chief European economist at BNP Paribas. “What’s more, we continue to see a gradual recovery in 2024, rather than further deterioration.”