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PostPosted: 23-05-2018 10:39:50    Post subject: The Eurozon Reply with quote

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BRUSSELS, Jan. 31 (Xinhua) -- Fresh eurozone economic data showed a bigger-than-expected leap in growth, inflation and employment, indicating that the bloc's economy keeps its recovery trend amid the political uncertainty sparked by Britain's Brexit vote and the election of Donald Trump in the United States.


Gross domestic product (GDP) of the 19-country eurozone expanded 0.5 percent in the fourth quarter of 2016, taking the full-year growth in 2016 to 1.7 percent, Eurostat, the statistical office of the European Union (EU) said on Tuesday.


It is the first time since the crisis-year of 2008, eurozone's growth speed exceeded the US which gained 1.6 percent last year.


The figure, which was nudged up from the 0.3 percent in the third quarter, could be well received in Brussels as European policy makers have been long cautioned about the bloc's subdued growth as well as unexpected downturns stirred by Brexit.


Eurozone's powerhouse Germany saw quarterly growth of 0.5 percent between October and December while France, the second largest economy in the single currency zone, surprised the market with 0.4 percent, twice as fast as in the second quarter.


"The Eurozone economy is in rude health," Claus Vistesen, Chief Eurozone Economist of Pantheon Macroeconomics said. He explained, though the data do not give any details, but advanced data in France, and the early estimate for Germany by the Bundesbank, suggest that a broad-based increase in domestic demand was the key driver.


Vistesen estimated that growth in the eurozone would slow a tad to 1.5 percent in 2017. "Which would still be decent, and above our estimate of the long-run trend at 1.0 percent-to-1.2 percent."


Furthermore, supported by stronger economic growth, the eurozone's unemployment rate fell to 9.6 percent in December 2016, reaching the lowest level since May 2009.


The unemployment rate of people under age 25 in the eurozone also decreased to 20.9 percent from 21.8 percent in December 2015.


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