- Jack Allen, European Economist at Capital Economics
According to the Euro stat statistics agency, growth in the single currency region advanced from January to March at a greater pace than the previous estimate, thus giving the bloc 1.7% growth on a yearly basis. Meanwhile, economists did not expect some changes in the year-on-year or quarter-on-quarter data. The statistical office of the European Union said that the rise was supported by strong household spending, which rose to 0.6% from 0.3% during the previous quarter, as well as taking into account a stabile increase in exports which accelerated by 0.4%.Within the Euro zone, Romania and Cyprus announced the steepest growth at 1.6% and 0.9%, while the Germany's economy expanded by 0.7%. However, Hungary, Greece and Poland economies slowed down, while record decrease was booked for Hungary (-0.8%), Greece (-0.5%) and Poland (-0.1%), respectively. Britain's economy, the largest within the Euro zone, posted quarterly growth of 0.4% and a 2% expansion in GDP on an annual basis, while GDP in Estonia remained stable.
Currently, the Euro zone has struggled with feeble growth, is trying to eliminate low inflation and decrease unemployment rate, after emerging from recession three years ago. The more recent problems including renewed concerns over Greece and the potential Britain‘s exit from the EU also puts additional pressure.
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