Data showed Tuesday (January 30) it was weighed down by industrial weakness in its largest economy - Germany.

The country has seen its business model hurt by geopolitical events.

That includes the loss of cheap energy from Russia and intense two-way trade with China.

Germany shrank 0.3% in the last three months of the year.

The 20 countries that share the euro barely avoided an outright recession during the period, with expansions in Spain and Italy helping out.

In the bloc as a whole output was flat, and it marked the sixth consecutive quarter of no or little growth.

Economists expect more of the same in the coming months.

The new year in the euro zone kicked off with a wave of strikes and protests over inflation.

There were several by farmers in Germany and France who oppose plans to gradually reduce subsidies from the EU.

However, with inflation now falling, workers are likely to regain some purchasing power this year.

Meanwhile, likely rate cuts by the European Central Bank could also ease pressure on the construction sector.