Euro-area growth quickened in the first quarter as
stronger-than-predicted performances from France and Italy made up for
weaker momentum in Germany.
Gross domestic product in the region rose 0.4 percent in the first
three months of the year after expanding 0.3 percent in the previous
three months, the European Union’s statistics office in Luxembourg said
Wednesday.
That’s in line with the median of 42 estimates in a Bloomberg survey. Greece fell back into recession.
The euro-region economy benefited from the sharp drop in oil prices since the second half of 2014, a weaker currency and a boost to confidence from the prospect of more European Central Bank stimulus.
Policy makers have warned that the upswing may not be sustainable unless
governments step up economic reforms, while there are also risks
related to the Greek crisis that threatens to splinter the currency
bloc.
“The euro zone’s economic recovery firmed moderately in the first quarter,” said Christian Schulz, senior economist at Berenberg Bank in London.
“Strong tailwinds from cheap oil, a weaker euro and a much more aggressive ECB helped across the currency area, while the Russian risk receded and Greece’s tragedy has not had a major impact outside Greece itself.”
The single currency pared gains after the report and was little changed at $1.1224 at 12:45 a.m. Frankfurt time. The Stoxx Europe 600 Index was up 0.8 percent.
Euro-area zone GDP data are measured primarily on a quarter-on-quarter basis, contrasting with the U.S. approach of looking at annualized data.
That’s in line with the median of 42 estimates in a Bloomberg survey. Greece fell back into recession.
The euro-region economy benefited from the sharp drop in oil prices since the second half of 2014, a weaker currency and a boost to confidence from the prospect of more European Central Bank stimulus.
“The euro zone’s economic recovery firmed moderately in the first quarter,” said Christian Schulz, senior economist at Berenberg Bank in London.
“Strong tailwinds from cheap oil, a weaker euro and a much more aggressive ECB helped across the currency area, while the Russian risk receded and Greece’s tragedy has not had a major impact outside Greece itself.”
The single currency pared gains after the report and was little changed at $1.1224 at 12:45 a.m. Frankfurt time. The Stoxx Europe 600 Index was up 0.8 percent.
Euro-area zone GDP data are measured primarily on a quarter-on-quarter basis, contrasting with the U.S. approach of looking at annualized data.
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