Eurozone growth outpaces the US

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.