Europe’s economy has stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output.

Eurozone growth slowed to a halt in the fourth quarter last year, dragged by contractions in major powers Germany and France which were held back by economic headwinds and political instability. At one end of the eurozone spectrum Spain saw its economy expand by 3.

The eurozone economy grounded to a halt in the fourth quarter of 2024, as Germany and France, the bloc’s two largest economies, posted worse-than-expected contractions, reinforcing concerns over persistent economic weakness in the region.