Euro zone economy unexpectedly grows in Q4 but weak 2023 looms

France registers unexpected GDP expansion while Italy shrinks

The eurozone eked out growth in the final three months of 2022, managing to avoid a recession even as sky-high energy costs, waning confidence, and rising interest rates took a toll on the economy that is likely to persist into this year.

Gross domestic product across the currency bloc expanded by a tiny 0.1 per cent in the fourth quarter, data from Eurostat showed on Tuesday, outperforming expectations in a Reuters poll for a 0.1 per cent drop. Compared to a year earlier, growth was 1.9 per cent, just beating expectations of 1.8 per cent.

Among the biggest eurozone countries, Germany and