Eurozone: Growth revised down in second estimate
February 14, 2017
More complete data showed that the Eurozone’s economy recovery remained on even footing in the final quarter of 2016 despite heightened political uncertainty. According to a second preliminary estimate, the Eurozone economy increased a seasonally-adjusted 0.4% in Q4 from the previous quarter, which matched Q3’s result but was revised down a notch from the first preliminary estimate of 0.5% growth. Compared with the same quarter of 2015, GDP expanded 1.7% in Q4, which was down slightly from Q3’s 1.8% increase.
A drop in industrial production in December and slower-than-expected growth in Germany and the Netherlands likely drove the slight revision to the Eurozone’s growth. However, even with the downward revision, growth in the region remains robust given geopolitical uncertainties. Although the preliminary GDP data did not include a breakdown by components, the Eurozone’s growth story is expected to have remained unchanged. Domestic demand is in the driver’s seat as an improving labor market and expansionary monetary policy support economic activity.
Meanwhile, additional data released by statistical offices across the continent showed that France and Germany’s economies picked up pace in Q4. Meanwhile, Spain’s economy continued growing healthily and growth in Italy moderated slightly. More complete GDP data including a breakdown by components will be released on 7 March.