Sunday 24 September 2017

Euro zone economic recovery slowed more than expected in third quarter

French President Francois Hollande (L) German Chancellor Angela Merkel (R) and European Commission President Jose Manuel Barroso leave after a news conference at the end of an international summit on youth unemployment attended by heads of states from EU countries at the Elysee Palace in Paris, November 12, 2013. REUTERS/Philippe Wojazer
French President Francois Hollande (L) German Chancellor Angela Merkel (R) and European Commission President Jose Manuel Barroso leave after a news conference at the end of an international summit on youth unemployment attended by heads of states from EU countries at the Elysee Palace in Paris, November 12, 2013. REUTERS/Philippe Wojazer

Euro zone economic recovery slowed more than expected in the third quarter, weighed down by shrinking output in France and Italy, but was kept in positive territory thanks to economic expansion in Germany, data showed today.

The €9.5 trillion euro zone economy grew 0.1pc in the three months to September from the previous quarter when it rose 0.3pc - the first expansion in 18 months, the EU statistics office Eurostat said in its first estimate.

Analysts polled by Reuters had expected growth in the 17 countries sharing the euro to slow down only to 0.2pc quarter-on-quarter.

There were positive signs in the southern periphery with Portugal growing 0.2pc on the quarter after a 1.1pc rise in the previous three months and Spain returning to a tepid growth of 0.1pc -- its first positive number quarter-on-quarter since the first quarter of 2011.

The nascent recovery is expected to get on a more solid footing next year and the economy is to expand 1.1pc, according to the European Commission's latest forecasts. Growth should accelerate to 1.7pc in 2015.

 

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