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Euro area GDP picks up slightly in third quarter

14 November 2017

Flash estimates for third quarter GDP in the euro zone due at 1000 GMT are expected to show the region powered ahead with 2.5 percent growth for the year, compared to 1.5 percent annual growth rates in the UK. The locomotive of the euro-zone released the data earlier and it came out at 0.8%, well above expectations. "Because of that, this could well be its strongest year for growth since 2007".

As a effect, analysts at Julius Baer expect the United States economy to outperform the eurozone in 2018 with 2.5% GDP growth, after being on par this year. Partly as a result of the growth, euro zone investments have turned in one of their best years since the single currency was born in 1999, confounding many who had bet on the bloc to be the disaster play of 2017.

The economy of Italy is seeing accelerating growth: 0.5% q/q, the highest since 2009.

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But it rose 3.3% year-on-year, slightly beating economists' average forecast of a 3.2% increase. They have been revising their eurozone GDP projection for 2017 upwards since May this year and now expect a marginally stronger figure (2.3%) for 2017.

The euro zone growth rate also exceeded that of Britain, which will leave the European Union in March 2019.

Sterling remained on the back foot, weakening by 0.1 percent to $1.3101 after falling 0.6 percent on Monday. "The outlook for production in the fourth quarter remains strong", ING's Colijn said.

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In early London trades, the euro rose 0.3 percent to $1.1696, its highest since October 26, when the European Central Bank said it would extend its asset purchase program until at least September.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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Euro area GDP picks up slightly in third quarter