Eurozone: Economy picks up steam in Q2
August 1, 2017
Momentum firmed in the Eurozone’s economy in the second quarter of 2017, as the region’s recovery kicked into a higher gear. According to a preliminary estimate, the Eurozone economy increased a seasonally-adjusted 0.6% in Q2 from the previous quarter, which was a notch above Q1’s 0.5% rise and FocusEconomics analysts’ expectations. Compared with the same quarter of 2016, seasonally-adjusted GDP expanded 2.1% in Q2, which was above Q1’s 1.9% increase.
Although the preliminary GDP data did not include a breakdown by components, the Eurozone’s growth story is expected to have remained largely unchanged. Domestic demand is in the driver’s seat as an improving labor market and expansionary monetary policy support economic activity. Economic sentiment rests at a multi-year high and other monthly data for the quarter have been positive. In addition, a more favorable external backdrop is also positive for the bloc’s momentum. More complete GDP data will be released on 16 August and 7 September.