Eurozone GDP increased by 0.3%

12.02.2016

The economy of 19 Eurozone countries in the fourth quarter of 2015 increased by 0.3% compared with the previous three months, according to preliminary data of Statistics of the European Union administration.

The GDP growth compared to October-December 2014 amounted to 1.5%.

Both results are in line with the expectations of analysts surveyed by Bloomberg.

In the third quarter of last year, the Eurozone economy grew by 0.3% compared with the previous quarter and by 1.6% for the year.

GDP of 28 EU countries in October-December also increased by 0.3% compared with the previous quarter.

In annual terms, the growth of the EU economy grew by 1.8%.

In total, for 2015 year, Eurozone GDP increased by 1.5%, and EU GDP rose 1.8%.

Analysts say that in order to maintain the pace of growth in the currency bloc's economy amid volatility in financial markets and falling oil prices, the European Central Bank may need to expand stimulus. Previously, ECB President Mario Draghi said that the Central Bank's management intends to review its monetary policy at its next meeting that will be held in March.

GDP growth in Germany, the biggest Eurozone economy, is also accounted for 0.3% in the fourth quarter as in the previous three months. In France, the rise of the economy slowed down to 0.2% from 0.3% in July-September.

Overall growth was 1.7 % in 2015. On an annual basis, German GDP for the fourth quarter increased by 2.1 %. Analysts on average had forecast that GDP will grow by 0.3 % for quarter and 2.3 % in annual terms.

According to Thomas Gitzel chief economist at VP Bank Group, 2015 was held under the slogan "slowly but surely". Growth in the fourth quarter, according to him, does not cause joy, but is not a cause for concern.

According to the Federal Statistical Office of Germany, in the last quarter of 2015 the construction sector got more investment in comparison with the third quarter, while foreign trade is an obstacle to growth.

Meanwhile, Greece's GDP in the last quarter decreased by 0.6% compared to the third quarter, when the drop was 1.4%. Thus, Greece has entered a phase of recession.

The European Commission last week lowered the growth forecast for the Eurozone GDP in 2016 to 1.7% from the expected 1.8% in November. In 2017, GDP growth in the 19 Eurozone countries is likely to increase to 1.9%.

Back Next suggested article