Friday, April 29, 2016

Euro-zone growth spurt – “A brilliant start to the year” – Reuters Germany

Brussels / Berlin growth doubled, pushed unemployment: the economy of the euro zone has been successful despite wall world economy a surprisingly good start to the year.

This was ensured especially consumer spending, where the money thanks to the relief through cheap energy sitting relaxed. What would be the consumer, however, makes the European Central Bank (ECB) for a headache. Despite its zero interest rate policy, consumer prices fall again.

The Gross Domestic Product (GDP), however, increased from January to March by 0.6 percent the previous quarter, as on Friday for the first time publish flash estimate of Eurostat statistics office showed. This is the strongest growth for a year and the twelfth quarterly growth in a row. Economists had only expected a gain of 0.4 percent, after it had 0.3 percent in the previous two quarters.

“The economy in the euro area has a very strong start to 2016 laid,” said Commerzbank economist Christoph Weil. She slapped her far better than the United States, the world’s largest economy: This was at the beginning only to a GDP growth of around 0.1 percent, as it suffers from the strong dollar and the problems of emerging economies

the economic recovery in the euro zone pushes unemployment to its lowest level in nearly five years in March around 16.4 million women had and men without a job – nearly 1.5 million fewer than a year earlier. The unemployment rate fell within one month from 10.4 to 10.2 percent. “This is the lowest value in the euro area since August 2011″, said the statistician.

What led exactly to the good start to the year, wants to Eurostat only on 13. explaining May Initial data from the euro area countries, however, indicate that consumers have pushed the economy. “The low inflation supported private consumption,” the European chief economist at Nordea Bank, Holger Sent. The French economy grew about the first quarter by 0.5 percent because household spending rose sharply by such increase since of 2004. Spain even managed 0.8 percent. Data from Germany are expected on 13 May.

“NO rEASON tO CHEER “

but

experts see no reason for euphoria. “Before was jubilation storms warned,” said economist Weil. “The strong increase is partly due to special factors such as calendar effects and the mild winter.” In April also fell, consumer prices in the euro zone by 0.2 percent last month. Economist Bert Colijn of ING Bank said that while the recovery in the countries of the monetary union’m better progress than we thought: “But for the company itself does not do this in rising prices noticeable.” The competition go ahead at the expense of profit margins. This in turn can slow investment and recruitment.

The ECB aims than the ideal value for the economy to an inflation rate of just under two percent. To the medium term to reach the back, they cut rates last to zero. In addition, the monetary authorities tightened the penalties for banks to park money at the ECB. The central bank also increased its monthly asset purchases to 80 billion euros and wants it soon also purchase corporate bonds. So the economy is boosted and inflation are driven high.

Caution hold many experts also appropriate because the GDP data were as early as never published. “The reliability of this first published estimate has yet to prove,” Weil said. So far, Eurostat has only 45 days after the end of the quarter called a first growth numbers, the final data followed another 20 days later. The flash estimate will be released 30 days after the end of the quarter now always, but can later pull corrections. It is handled in the US – with sometimes massive revisions

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