GDP growth was in line with expectations and matched the 0.3% expansion in the prior quarter, though divergences across the region highlight ongoing struggles.
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Austria saw stagnation in GDP growth, while Portugal managed 0.2 percent expansion.
Among the major eurozone economies, Germany gained 0.3 percent in the fourth quarter, unchanged from the third, while France slowed to 0.2 percent from 0.3 percent.
“Overall, the Eurozone recovery continued at its modest cruising speed in the fourth quarter”, said Teunis Brosens, an analyst at ING.
Eurozone industrial output in particular has been weak. For all 2015, the 19-nation eurozone expanded 1.5 per cent, the Eurostat statistics agency said.
Among Member States for which data are available, the largest decreases in industrial production were registered in Ireland (-4.3%), Lithuania and Sweden (both -3.3%), and the highest increases in Denmark (+2.9%), the Netherlands (+1.5%) and Greece (+1.4%). The annual decline was the steepest since November 2014.
Capital Economics even warned that it may have to cut its already low 1.2-percent growth forecast for this year.
The data compares with a rise of 1.5 percent in the euro area and by 1.8 percent in the EU28 as a whole for the same period the previous year.
Germany maintained its growth momentum in the fourth quarter, helped by domestic demand.
For the full 28-nation European Union, the economy gained 0.3% in the fourth quarter, down from 0.4% in the third, and expanded 1.8% for the year.
In Italy, growth in agriculture and services was offset by a fall in industrial output.
Lloyds Banking Group said: “Latest survey indicators suggest some slowing of euro area activity at the start of this year”.
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Stock markets in Europe, Asia and the USA have tumbled in recent weeks, with bank stocks bearing the brunt of the selloff, underlining investors’ concerns that the negative interest rate policies pursued by some central banks- including the European Central Bank-may threaten lenders’ profitability and weigh on growth. It forecast 2 percent market growth in Europe this year, and between 1 and 2 percent growth globally. The report noted that downside risks to the projections remain high, particularly given the current uncertainty in China and the volatility in global financial markets. The preliminary estimate does not provide a breakdown of GDP. The ECB will update its Eurozone projections next month.
