Five Major Eurozone Economies Post Positive Quarterly Growth
For the first time after first quarter in 2011, the eurozone economy has increased more than expected in the final quarter of 2013, leading to less pressure on the European Central Bank. The European Union's statistics office in Luxembourg revealed 0.3% increase in the Eurozone Gross domestic product beating the median forecast of 0.2% as per data compiled by Bloomberg.
The GDP was higher by 0.1% in third quarter of 2013. All the investors were out on month's notice for further economic stimulus by Mario Draghi, ECB President, on February 6, 2014. The benchmark interest rate for the ECB has been held at 0.25%, said Mario Draghi.
Howard Archer, chief European and U. K. economist at IHS Global Insight in London, said: "Today's GDP report slightly eases some of the appreciable pressure on the ECB to take immediate further stimulus action".
The novel report has led to gain in euro against the dollar, trading at $1.367 in Brussels, up 0.1% on the day. A slight increase of 0.7% has also been seen in the economy of Netherlands with 0.1% growth in the Italian economy, third-largest economy in the eurozone.
Also, a significant 0.5% increase in economy of Portugal has been reported, which was expected to increase by only 0.1%. Evelyn Herrmann, economist at BNP Paribas, said that for the first time all big five euro zone economies posted positive quarterly growth rates.
Not only this, the non-seasonally adjusted trade in euro areas dropped to about 13.9 billion Euros in December, which was 17 billion in November.
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