- Home
- >
- Daily Accents
- >
- Growth in the euro area outpaced that in the US for the first time since the crisis in 2008.
Growth in the euro area outpaced that in the US for the first time since the crisis in 2008.
Rating:
Loading...Euro zone officials received a slew of good news on Tuesday morning with stronger-than-expected growth and inflation figures and a falling unemployment rate.
The 19-member economy saw GDP (gross domestic product) growth of 0.5 percent in the last quarter of 2016 compared to the previous three-month period, and the preliminary figures also showed a 1.8 percent rise compared to the previous year. As a result, in the whole of 2016, the euro area grew 1.7 percent.
Meanwhile, flash inflation data projected a rate of 1.8 percent for January, up from 1.1 percent in December. The increase is largely due to higher energy prices, according to the EU's statistics provider Eurostat. The flash estimate comes close to the European Central Bank's target of putting inflation close but below 2 percent.
The ECB has denied calls to start tightening its monetary policy, but some members have expressed that the time to consider the so-called "tapering" of its quantitative easing program is coming.
In terms of unemployment, the euro area registered in December the lowest rate since May 2009. The jobless figure stood at 9.6 percent in December, down from 9.7 percent in November and down from 10.5 percent a year ago.
Looking at particular countries, Germany and the Czech Republic registered the lowest unemployment rate with 3.9 and 3.5 percent, respectively. Greece continues to see the highest number of people unemployed, above 20 percent.
The data are very good for the euro area and will support euro in the short term. The next press conference of the ECB can receive guidance on whether and how consider tightening monetary policy in the old continent.
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
