- Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro
A pickup in inventories and stronger inflow of investment kept the 17-nation economy's growth in positive territory in the third quarter, even though the pace of growth remains sluggish. As it was widely expected, the Eurozone gross domestic product climbed 0.1% through September, following a 0.3% growth in the previous quarter. On a yearly basis GDP shed 0.4% in the quarter; however, still posted a slower downfall than the revised 0.6% contraction over the second quarter. Shipments from the region grew 0.2%, decelerating from a 2.1% gain earlier, while imports expanded 1%, from 1.6% in the prior quarter.
While these figures are diminishing concerns that Eurozone will slide into another recession, according to the ECB's projections, the bloc will contract 0.4% this year, before expanding 1% in 2014. Meanwhile, Bloomberg's monthly survey showed the Eurozone will post a 0.2% growth in the fourth quarter, and 0.3% in Q1 2014. Europe is still suffering from the legacy of a debt crisis that is now in its fifth year, but the increased economic confidence and improvement in the labour market are expected to positively affect consumers' and businesses' mood, pushing domestic demand higher. Nonetheless, the rebound is fragile and uneven, while further structural reforms and weaker Euro are needed to achieve a long-term sustained prosperity.
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