Economic growth in the Eurozone surprised analysts by doubling expectations in Q3 2024, hitting 0.4% quarterly growth versus the predicted 0.2%. While year-over-year growth reached 0.9%, concerns mount over the sustainability of this expansion.
The growth appears largely driven by government stimulus rather than organic economic strength. Industrial sectors continue sliding into recession territory, while consumer inflation expectations keep climbing. Most concerning is the lack of productivity gains, suggesting the expansion isn't built on stronger fundamentals.