Eurozone: Economy keeps cruising at fast pace in Q4
February 14, 2018
The second preliminary estimate confirmed that the Eurozone economy ended 2017 on a solid note. According to 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 the first preliminary estimate released on 30 January. 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 dynamics are expected to have remained largely unchanged. Growth has been broad-based, although domestic demand is in the driver’s seat. Additional data for the individual economies revealed that growth slowed in major players Germany (+0.6% quarter-on-quarter), Italy (+0.3% qoq) and Spain (+0.7% qoq) in the fourth quarter. In contrast, France’s economy gained steam, expanding 0.6% over the previous quarter. More complete GDP data, including a breakdown by components, will be released on 7 March.
Eurozone GDP Forecast
FocusEconomics Consensus Forecast panelists expect the Euro area economy to expand 2.2% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect the economy to expand 1.9%.