Eurozone growth in decline
The growth rates in both the Eurozone and the UK individually have been slowing this year.
Here is what we know so far:
- Economic growth in the Eurozone slowed to 0.4% for the period from January to March 2018.
- This has seen a 0.3% decline since last quarter. Growth was up at 0.7% in the previous quarter from October to December 2017.
- On a year-on-year basis, the eurozone’s GDP growth slowed from a rate of 2.8 per cent to 2.5 per cent.
- The growth rate of loans to firms had slumped by 0.3% from January to February this year. This indicates that GDP growth has slowed from 2.7% in the last three months of 2017. This has slowed to a rate of about 2% so far this year.
- The Eurozone is still doing better than the UK economy, which only grew by 0.1% in the same quarter.
- “This was the fifth out of seven consecutive quarters that the eurozone grew faster than the UK following the EU referendum.” – Barret Kupelian, senior economist at PricewaterhouseCoopers.
- The latest Office of National Statistics data shows the UK’s economy growing at an annual rate of just 1.2 per cent. This is the weakest it has been in 6 years, since 2012.
- Analysts have attributed the UK lack of growth to Brexit uncertainty and the cost cuttings on household incomes after the peak in inflation last year.
Photo credit: express.co.uk
References: BBC News http://www.bbc.co.uk/news/business-43977687