The Eurozone showed extremely weak growth of GDP in the 3rd quarter
Today, Eurostat published a first assessment of data on GDP growth in the Eurozone for the 3rd quarter of 2018, If economic growth in the second quarter of this year was disappointing in the third quarter growth was disappointingly weak. Thus, in annual terms, GDP in the Eurozone increased in Q3 only 1.7%, compared with expected growth of 1.8% and growth in the second quarter to 2.2%.
And the data on a quarterly basis much more dispersed with the forecast of analysts: experts predicted growth in Q3 to 0.4% 2nd quarter, the real economy in the Eurozone grew by only 0.2%. A small increase in industrial production in the Eurozone in August (against the fall in June and July) gave some hope that the pace of Eurozone GDP growth for the quarter will at least match the forecasts. But expectations were not met.
In a press release published on the website of Eurostat, is not given the breakdown of GDP for specific countries because it was a tentative assessment of the growth of gross domestic product in the 3rd quarter. However, you may recall that in Q2 GDP growth in the Eurozone prevented the stagnation of the economy in Italy, Germany and France, especially in today experiencing budgetary problems of Italy.
The growth of Italian GDP in the end was even lower than the GDP growth in the Eurozone as a whole. This morning published data on GDP growth in Italy and France in Q3, which was worse than forecast. So, in the 3rd quarter the Italian GDP grew by only 0.8% y / y while market expected growth by 0.9 percent, quarter-on-quarter Italian GDP did not show growth.
Yes, and in France the situation is not better: on a quarterly basis, GDP grew by only 0.4%, while analysts expected growth of 0.5%. While it is clear that the European Central Bank took the right decision at a recent meeting to leave the zero interest rate unchanged: the increase in interest rates would lead to further stagnation of economic growth.
Euro in today’s trading after the publication of statistics on GDP falls to the dollar by 0.18%. And again, the single European currency returned to the levels of the August lows, the trading range for the pair “Euro-dollar” we see at the level of 1.13-1.14$./Euro.
The Deputy Director of analytical Department,