GDP in Eurozone
Eurozone - GDP
Complete data reveals growth inches up in Q1
The third estimate of GDP released by Eurostat revealed that growth had accelerated at the start of 2017. GDP increased a seasonally-adjusted 0.6% in Q1 over the previous quarter, which was a notch above the preliminary estimate and Q4’s figure. The result marks the fastest growth in two years as activity firms across the common-currency bloc.
Q1’s upturn came on an improvement in the external sector, which did not subtract from growth as in the previous period. A pick-up in global demand fueled 1.2% growth in exports, slightly below Q4’s 1.7%. The deceleration in import growth was greater, fueling a neutral contribution to GDP and the improvement in the headline figure. On the demand side, the Eurozone’s story remained broadly unchanged with improving labor markets, less tight fiscal policies and easy monetary policy fueling a solid performance. Private consumption grew 0.3% and government spending increased 0.4%. However, investment growth more than halved and was a weak spot in the GDP print, coming in at 1.3% after a notable 3.4% in Q4.
Looking at the individual countries, growth is broadening across the region and no economy contracted in Q1. The positive result suggests that the Euro area has managed to shake off multiple political hurdles, including a Brexit-induced slowdown, and illustrates that the recovery remains firm. On an annual basis, GDP growth ticked up from 1.8% in Q4 to 1.9% in Q1.
An improving labor market and a stronger global economy should support growth this year. FocusEconomics Consensus Forecast panelists expect the Euro area economy to expand 1.7% in 2017, which is unchanged from last month’s forecast. For 2018, panelists expect the economy to expand 1.6%.
Eurozone - GDP Data
|Economic Growth (GDP, annual variation in %)||1.6||-0.9||-0.2||1.2||1.9|
5 years of economic forecasts for more than 30 economic indicators.
Eurozone GDP Chart
Source: Eurostat and FocusEconomics calculations.
|Exchange Rate||1.16||-0.27 %||Jul 26|
|Stock Market||1,197||0.55 %||Jul 26|
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July 24, 2017
Leading data suggest that the Euro area’s growth boom eased at the start of Q3, although activity remained buoyant.
July 20, 2017
The European Central Bank (ECB) decided to keep interest rates unchanged at its 20 July meeting and made no changes to its bond-buying program.
July 17, 2017
Complete data released by Eurostat on 17 July confirmed that harmonized inflation was 1.3% in June, down from May’s 1.4%.
July 12, 2017
The industrial sector in the common-currency bloc gained steam in May.
June 30, 2017
Harmonized inflation continued to fall in June, according to a flash estimate released by Eurostat on 30 June.