Eurozone: Growth remains strong in Q3
October 31, 2017
The Eurozone’s economy continued to perform robustly in the third quarter of 2017, according to a preliminary estimate released by Eurostat. GDP increased a seasonally-adjusted 0.6% in Q3 from the previous quarter, which was a notch below Q2’s 0.7% rise. However, the reading was slightly better than FocusEconomics analysts’ expectations of a 0.5% increase. Compared with the same quarter of 2016, seasonally-adjusted GDP expanded 2.5% in Q3, which was above Q2’s 2.3% 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 growth. Economic sentiment rests at a multi-year high and the unemployment rate fell to the lowest rate since January 2009 in September. In addition, a more favorable external backdrop is also positive for the bloc’s momentum, although a strong euro is probably taking some steam out of export growth. More complete GDP data will be released on 14 November and 7 December.