uploads///Eurozone GDP Growth Improved in Q

Does the Rise in Eurozone GDP Indicate a Turning Point?

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Dec. 4 2020, Updated 10:52 a.m. ET

Eurozone GDP

According to a Eurostat report, Eurozone 4Q16 economic growth expanded to 0.5% as compared to the 0.4% improvement in the previous quarter, which is higher than the market expectations of 0.4% growth.

The Eurozone economy (EZU) (HEDJ) (N100-INDEX) has gone through various crises in the past year. The Eurozone debt crisis in 2011 created a huge problem for the economy. The slower economic growth, higher unemployment, deflationary situation, and lower consumer spending are the important factors that affected its performance.

Now, the economy (FEZ) (VGK) (IEV) is showing signs of change. Unemployment is falling, inflation is slowly improving, and consumer confidence is also improving. Fourth quarter economic growth was mainly driven by the higher consumer spending and improvement in export growth.

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The depreciation of the euro against the US dollar (UUP) also contributed to the economy’s exports. The major economies of the Eurozone such as Germany (EWG) (DAX-INDEX), France (EWQ) (PX1-INDEX), and Spain saw improvement in their various economic indicators. These improvements suggest that overall economic growth could be at a turning point.

In the next part of this series, we’ll analyze the Fed’s recent moves.

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