It had been anticipated that Eurozone growth for Q3 2017 would come in at 0.5% over Q2. In the event, Eurostat have issued an initial evaluation of growth within the 19 states that use the single currency at 0.6%; a little above expectations. The figure, naturally, is an aggregate of growth in 19 different economies which face different national challenges and opportunities.
The data shows a 2.5% increase for Q3 on a year-on-year basis, but it represents a slowing of the Eurozone economy against the Q2 growth rate which was adjusted upwards to 0.7%.
Partial data is available for Eurozone member states and it reveals that relative to Q2, growth slowed in France, Spain and Belgium; it was unchanged in Austria and improved in Latvia.
Historically, between 1995 and 2017, the Eurozone has returned average quarterly growth of 0.38% with a record contraction of -3% seen in Q1 2009 and the greatest quarterly expansion of 1.3% in Q2 1997, to put the figures in perspective.
On a year-on-year basis, the current 2.5% expansion is the best seen the bloc since Q1 2011.
The unemployment situation in the Eurozone continues to improve, but again, with strong regional variations. The average figure for unemployment has dipped to 8.9% which is its lowest level since January 2009. It is now below the long-term average for the bloc which stands at 9.77% (1995 -2017). However, Greece still sees high unemployment of 21% with Spain at 16.7%, but significant numbers in these countries have found work in the year to the release of data of 2.4% in both nations. On a positive note, the Greek economy manged to return to growth in Q1 2017, according to the nation’s statistical agency, Elstat. The Greek economy contracted by 1.1% in Q4 2016, but grew by 0.4% in Q1 2017.
Inflation in the Eurozone is still well below target (2%) at 1.4% in October, having eased from 1.5% in September.