Eurozone: Economy ends 2017 on strong note
January 31, 2018
The Eurozone economy continued to grow robustly in the final quarter of 2017, rounding out the best year of growth in over a decade. According to a preliminary estimate released by Eurostat, GDP increased a seasonally-adjusted 0.6% in Q4 from the previous quarter, which was a notch below Q3’s 0.7% rise. The reading matched FocusEconomics analysts’ expectations. Compared with the same quarter of 2016, seasonally-adjusted GDP expanded 2.7% in Q4, which was slightly below Q3’s 2.8% increase. For the full year 2017, GDP grew 2.5%, notably above 2016’s 1.8% increase.
The preliminary GDP data did not include a breakdown by components, but the Eurozone’s growth story is expected to have remained largely unchanged. The recovery is broad-based, with domestic demand in the driver’s seat thanks to an improving labor market and expansionary monetary policy. In addition, a robust global economy is supporting exports, even with a strong euro. More complete GDP data will be released on 14 February and 7 March.