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Friday, 9 June 2017 00:00 - - {{hitsCtrl.values.hits}}
AFP: Growth in the eurozone accelerated in the first quarter of 2017 as the economy brushed off the unknowns of Brexit and fraught elections in France, data showed on Thursday.
The EU’s Eurostat statistics agency said growth in the eurozone landed at 0.6% in the January to March period, revising higher an earlier estimate of 0.5%.
This was above the 0.5% in the previous quarter and exceeded analyst forecasts.
The fresh data lent credence to surveys suggesting the eurozone economy is sustaining growth at its fastest pace since it emerged from the worst of the financial crisis six years ago.
The eurozone economy has seen a steady period of growth, expanding by 1.8% in 2016 with jobs hiring also on the rise.
That was faster than the United States’ growth rate of 1.6% last year, the slowest pace since 2011.
The IMF forecasts that the eurozone will maintain that pace in 2017 with annual growth of 1.7%.
Spain was a solid performer in the period from January to March, growing by 0.8% as the country continues to recover from a damaging real estate crash marked by sky-high unemployment.
But economic growth in France slowed in the first quarter to 0.3% just before the country chose centrist Emmanuel Macron in an election where the economy took centre stage.
Still, the overall figure for the eurozone shows that recovery in Europe remains on track, despite the significant political uncertainties in Europe, including Britain’s divorce from the EU.
The sustained growth will put pressure on the European Central Bank to scale back its controversial stimulus measures.
Expectations are high that the European Central Bank will hint that it is heading for the exit from its easy-money policy when governors meet in Estonian capital Tallinn Thursday.
The ECB, led by Mario Draghi, has however been at pains to stress that, despite the series of positive economic signals, it may be too soon to pull back on the program.
AFP: The European Central Bank on Thursday kept its key lending rates unchanged at record low levels, but said it did not foresee any further cuts in the coming months.
The Frankfurt institution kept its main refinancing rate at 0.0%, the rate on the marginal lending facility at 0.25%, and the deposit rate at -0.4%.
“The governing council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” it said.
It also maintained plans to buy 60 billion euros of corporate and government bonds per month until December under its “quantitative easing” program.
