Eurozone growth remains steady as economy's recovery continues to roll onwards

 
Jasper Jolly
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The Eurozone economy seems to be hitting the right chords (Source: Getty)

The Eurozone economy kept its momentum in the first quarter of 2017, according to early estimates which showed solid growth across the bloc.

Output rose by 0.5 per cent in the Eurozone in the first three months of the year, an annual rate of 1.7 per cent, according to the European Commission.

The figures continued the growth trend from the end of 2016, although the annual rate dipped slightly, taking into account earlier weakness.

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The euro remained stable against other currencies in reaction as the estimate matched economists’ expectations.

Economists have greeted signs of a steady recovery in the Eurozone in recent months, with survey evidence from throughout the region showing new orders rising for manufacturers and confidence reaching levels not seen since before the debt crisis which rocked the continent in 2011.

Meanwhile unemployment has gradually moved lower, with the jobless rate in Germany, the region’s largest economy, staying at historically low levels.

Read more: Draghi: Risks to the Eurozone becoming more "balanced" as ECB holds policy

Meanwhile a rise in core producer price inflation, also reported today by the European Commission, suggests inflationary pressures may be building further.

Howard Archer, chief UK and Eurozone economist at IHS Markit, said: “Markedly improved labour markets, a competitive euro in tandem with decent global demand, very accommodative monetary policy and currently elevated business and consumer confidence are supportive to Eurozone growth.”

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