Eu­ro­zone growth out­paces the US

Yorkshire Post - - MARKET REPORT -

THE EU­RO­ZONE’S an­nual eco­nomic growth rate out­stripped that of the United States in the third quar­ter, set­ting up 2017 as the best year for the cur­rency area since fi­nan­cial mar­kets crashed a decade ago.

Ger­many was a ma­jor fac­tor, but even some of the bloc’s lag­gards, such as Italy, showed signs of re­vival.

Euro­stat, the Euro­pean Union statis­tics of­fice, con­firmed a pre­lim­i­nary es­ti­mate that euro zone gross do­mes­tic prod­uct (GDP) grew 0.6 per cent from July to Septem­ber from the pre­vi­ous quar­ter and on a year on year ba­sis was 2.5 per cent higher.

This was higher than the 2.3 per cent year-on-year rate for the US econ­omy, which had been grow­ing faster than the eu­ro­zone. The US quar­terly num­bers were slightly bet­ter than the euro zones at 0.7 per cent, how­ever.

“A ro­bust labour mar­ket re­cov­ery, grow­ing ex­port mar­kets, an ac­com­moda­tive mone­tary stance, im­prov­ing lend­ing con­di­tions and mod­est in­fla­tion are but a few of the tail­winds the eu­ro­zone econ­omy is ex­pe­ri­enc­ing,” ING econ­o­mist Bert Colijn said.

“Be­cause of that, this could well be its strong­est year for growth since 2007. The eu­ro­zone will likely out­pace both the US and UK in terms of GDP growth in 2017,” he said.

Eu­ro­zone GDP grew 3.0 per cent in 2007, and reached 2.1 per cent in 2010 and 2015.

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