2nd May 2018

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

            The Telegraph https://www.telegraph.co.uk/business/2018/03/27/eurozone-gdp-growth-has-peaked-data-suggest-amid-mounting-tension/

            The Independent https://www.independent.co.uk/news/business/news/eurozone-gdp-latest-uk-stagnation-eurostat-office-for-national-statistics-a8332206.html