Arab Today, arab today eurozone economy finally reaches precrisis levels
Last Updated : GMT 13:50:14
Arab Today, arab today
Arab Today, arab today

Eurozone economy

Eurozone economy finally reaches pre-crisis levels

Arab Today, arab today

Arab Today, arab today Eurozone economy finally reaches pre-crisis levels

The Eurostat statistics agency said growth in the eurozone accelerated
Brussels - Arab Today

The eurozone's economy grew far beyond expectations in the first quarter of 2016, finally surpassing pre-crisis levels after eight years, as cheap oil and credit made itself felt.

Inflation in Europe however remained very low and a source of concern with the threat of long term damage caused by falling prices weighing on the economy.

The Eurostat statistics agency said growth in the eurozone accelerated in January to March, to 0.6 percent.

This expansion beat expectations for 0.4 percent growth and was double the level posted in the two previous quarters, putting the eurozone on course to grow by 1.6 percent year-on-year.

The recovery in the 19-nation single currency area, for years mired in a debt crisis and low growth, contrasts with disappointing figures in the United States, which disappointed analysts with an annual rate of growth of just 0.5 percent in the first quarter of this year.

Analysts said the jump in eurozone growth meant the benefits of cheap oil and low borrowing rates were finally making their way to consumers.

"Good news from the eurozone: One by one, the pieces are falling into place," said Holger Schmieding, of Berenberg Bank. 

"Despite the serious market turbulence in January and February, the eurozone economy started rather well into 2016," he said.

In further positive news, eurozone unemployment in March fell to 10.2 percent, its lowest level since 2011, Eurostat said."The European Central Bank will certainly be encouraged by the marked first quarter pick-up in eurozone GDP growth, and will no doubt argue that it shows its monetary policy is working," said Howard Archer, of IHS Global Insight.

The ECB has slashed interest rates to zero percent, beefed up its controversial bond-buying and made vast amounts of cheap loans available to banks in a bid to jumpstart inflation and boost the economy.

- Sharp declines -

On the downside for the ECB, eurozone inflation in April fell back into negative territory, data also showed.

The renewed bout of deflation will feed into accusations that the ECB measures to boost prices are not working.

Eurostat said inflation in April was negative 0.2 percent, compared with a revised zero percent in March. The eurozone was previously at the negative level in February.

Analysts surveyed by Factset data research company had projected inflation of zero percent. 

Fighting deflation -- a persistent and debilitating decline in prices that weighs on the economy -- has been the ECB's top priority.But the ECB has received biting criticism in Germany for sparking the rise of political anxiety and populism over the state of the economy.

German savers in particular are angry that the ECB policies are eroding their earnings.

"Drilling down into the detail it's not hard to see where most of that decline (in prices) came from with sharp declines in energy prices contributing to all of the decline," said Michael Hewson, of CMC Markets in London.

"Given the surprise jump in the eurozone GDP numbers it would seem that energy prices... are (also) acting as a fiscal stimulus and helping to support the recovery," he said.

Eurostat did not break down the growth numbers by countries, but official data in France on Friday revealed better-than-expected 0.5 percent growth for the first quarter of this year.

Spain also posted a solid reading of 0.8 percent for the quarter, despite an ongoing political crisis.

Overall, the eurozone economy stood at 2.48 trillion euros at the end of the quarter, Eurostat said. 

This exceeded the pre-crisis high of 2.47 trillion euros reached in the first quarter of 2008.

Source :AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eurozone economy finally reaches precrisis levels Arab Today, arab today eurozone economy finally reaches precrisis levels

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday