Mercado Released [18 May 2015]: EUROZONE ECONOMIC GROWTH
Eurozone economic growth accelerated in the first quarter of 2015, as both Italy and France attained positive growth rates for the period. The Euro area grew by 0.4% during the first three months of the year, beating the UK and US. This marks the fastest rate of growth the zone has seen in the past two years. Consumer spending was one of the main factors that was responsible for boosting economic growth, however the increased consumption was based on lower oil prices. If the oil price and the euro strengthen then the Eurozone could suffer a decline in growth. Despite the uptick in growth in many countries throughout the region, the Greek economy continued to struggle as the country moved into a recession after the second consecutive quarter of negative growth. The largest economy within the Eurozone, Germany, also saw its growth move lower from the last quarter of 2014. Germany’s growth moved from 0.7% to a mere 0.3%, as imports outpaced exports. The Spanish economy was one of the best performing nations, with growth climbing by 0.9% for the quarter, whist Italy and France also exceeded expectations growing by 0.3% and 0.6% respectively.
For more on the economy read this week’s NMG Mercado here