The Eurozone Economy Grows Better Than Expected, and the Euro May Recover Some Losses

Preliminary data for the third quarter of the year showed economic growth in the Eurozone surpassing expectations, driven by improved performance in the French and Spanish economies, and Germany’s return to growth after an unexpected contraction.

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The Euro
Germany

The Euro

According to data released on Wednesday by the European Statistics Office, the Eurozone’s GDP grew by 0.9% year-on-year, accelerating from 0.6% and 0.5% during the second and first quarters, respectively.
On a quarterly basis, the region’s GDP rose by 0.4%, exceeding the expected growth of 0.2%. Spanish GDP recorded a 0.8% rise, while French GDP grew by 0.4%.

Germany

The German economy grew by 0.2% on a quarterly basis after a 0.3% contraction in the second quarter, defying expectations of another 0.1% contraction. However, separate data from the German Statistics Office showed that the German economy shrank by 0.2% year-on-year for the second consecutive time.
The office also reported that the number of unemployed people in Germany increased by 27,000 to reach 2.86 million in October, exceeding expectations of an increase of just 15,000.
This may reduce pressure on the European Central Bank in the coming period, as the bank had been aggressively cutting interest rates, negatively affecting the euro’s performance against a basket of currencies. Consequently, the euro is expected to recover some of its losses during the upcoming trading sessions.

The Eurozone Economy Grows Better Than Expected

The Eurozone Economy Grows Better Than Expected

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