Eurozone recovery picks up speed
April 29, 2016, 2:12 pm     |   Source: BBC

The eurozone`s economy grew by a faster-than-expected 0.6% in the first three months of the year, according to official statistics.

The growth rate in the 19-nation bloc doubled from the 0.3% rate recorded in the previous quarter, and was above analysts` expectations of 0.4%.

However, separate data from Eurostat also indicated that deflation had returned to the eurozone.

Inflation in the bloc fell to minus 0.2% in April, down from zero in March.

Other Eurostat figures showed the eurozone`s unemployment rate fell to 10.2% in March, the lowest rate for four-and-a-half years.

Uncertainties remain

The latest growth figures suggest that the eurozone`s economy is now bigger than it was before the start of the financial crisis eight years ago.

The eurozone has recently benefited from a fall in oil prices and the euro, particularly in Germany.

Looser budgetary policies by government have also freed up resources in some of the region`s debt-laden economies.



Howard Archer, economist at IHS Global Insight, said the eurozone should be able to sustain a growth rate of about 0.4% quarter-on-quarter in the future, but warned the rate could ease in the three months to June.

"Global economic uncertainties and problems are still a handicap for eurozone growth, not only through limiting exports but also through weighing down on business and consumer confidence," he said.

"The risk of recurrent terrorist attacks and the possibility of the UK voting to leave the EU in June`s referendum are also uncertainties that could impact on eurozone growth."

ECB action

The inflation figures showed that energy prices fell 8.6% year-on-year in April, while unprocessed food prices rose 1.2%.

Stripping out those items, the core inflation rate showed consumer prices rose 0.8% year-on-year in April - less than a 1% increase in March.

The European Central Bank`s target is to keep the headline inflation close to, but below, 2%.

In March, the ECB cut interest rates further and expanded its bond-buying stimulus programme in an attempt to drive growth in the eurozone and push up inflation.



Comments

m1.png m2.png m3.png m4.png m5.png
f1.png f2.png f3.png f4.png f5.png
+ =
  • Union
    April 29, 2016, 10:13 pm
    EU is great power. They need to stick tgether
Latest Videos
VIDEO: The Biology of Bliss and the Human OS - Jamie Wheal
Terror and Tourism: Changing the Travel Landscape
Earth In 2050 - HD Documentary 2015
The drive for gender equality in corporate Japan
Plane touches down then aborts during storm (VIDEO)
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens (VIDEO)
Money Survival Tips for Millennials (VIDEO)
Lightning strike explodes a tree (VIDEO)
Latest Photos
best cities for small businesses
Best Jobs in America (PHOTOS)
Inside the coolest private jets (PHOTOS)
The best hotel club floors in the world
Winning Images from the 2015 National Geographic Traveler Photo Contest
PHOTOS: Raging Wildfires Prompt Major Evacuation
Amazing Geometry Cities from air - Photos
Photos Bangkok Get snow - Opens Snow Village