Monday 23 October 2017

Eurozone economy grows at twice the speed of Britain's

European Union powers ahead as UK sees 'notable slowdown'
European Union powers ahead as UK sees 'notable slowdown'
Colm Kelpie

Colm Kelpie

The eurozone economy grew by 0.6pc in the three months to the end of June, compared with the early part of the year, official data shows.

Between January and March the economy of the 19-member bloc increased 0.5pc.

The eurozone economy in the second quarter grew at twice the speed of the UK's, which suffered a "notable slowdown" in the first half of the year.

It's also just below the 0.65pc seen in the US in the same period.

The acceleration in output growth confirms the sound recovery of the eurozone after data released on Monday showed the bloc recorded its lowest unemployment rate since 2009 in June.

Christian Jaccarini, an economist with London based think tank the Centre for Economics and Business Research (CEBR), said this and other data suggests that the eurozone is moving in the right direction.

"Moving forward, CEBR forecasts the eurozone to expand by 1.9pc in 2017, revised up from our earlier forecasts.

"We also anticipate that the ECB will announce a tapering of its bond purchasing scheme at the start of 2018, but leave interest rates unchanged for the foreseeable future."

Data released earlier this month showed that the UK economy suffered a "notable" slowdown in the first half of the year.

The British economy grew by 0.3pc in the three months to June, fractionally better than the 0.2pc performance in the first quarter.

The UK economy has proved more resilient to the effects of the Brexit vote than initially expected by economists, although they anticipate rising inflation to take its toll on both consumer confidence and spending.

The UK was at the bottom of the growth league table for the first three months of the year.

Comparable data for the second quarter has not been published.

In its latest forecasts, released last month, the International Monetary Fund estimated the eurozone would grow 1.9pc this year and 1.7pc in 2018, above Britain's projected growth of 1.7pc this year and 1.5pc next.(Additional reporting Reuters)

Irish Independent

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