Eurozone’s GDP in 2Q17
According to the report provided by Eurostat, the Eurozone’s economy posted a growth rate of 0.6% in 2Q17. In 1Q17, the economy posted a growth rate of 0.5%. The 2Q17 figure is in line with the preliminary market expectation.
Among the Eurozone’s (EZU) (VGK) various member countries, Spain (EWP) posted improved economic activity. France (EWQ) and Italy’s economic growth remained unchanged in 2Q17, while Germany’s preliminary GDP slowed in 2Q17.
Among the various components of the GDP, consumer spending and government spending picked up in the economy in 2Q17. However, non-residential fixed investments slowed during the quarter. The strong euro (FXE) also hampered the economy’s exports.
Growth is gradually picking up in the Eurozone’s economy. Certain factors like geopolitical issues and the stronger currency are mainly impacting the economy’s performance.
The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) economic performance, rose nearly 2.8% in July 2017. The iShares MSCI Eurozone ETF (EZU), which tracks the Eurozone’s performance, rose nearly 3.4% in July. The improvements in major ETFs indicate that the situation is changing in the Eurozone’s economy.
In the next part of this series, we’ll analyze how the Eurozone ZEW Economic Sentiment Index performed in August 2017.