Statements released by the European Union’s statistics office, Eurostat, reported a 0.6% growth in the Eurozone’s economy. The growth was noted for the months preceding September. The office also stated that the Eurozone had experienced a growth rate of 2.5% in the past 12 months.
In October, the European Central Bank (ECB) reported a raise in its growth forecast for 2017. The growth registered was 2.2%, a marked increase from the values noted in the past decade.
Additionally, Eurostat stated that unemployment levels in the 19 nation Eurozone was 8.9%. This is the lowest recorded rate in close to nine years.
The conclusion being drawn by analysts and investors alike is that the Eurozone is finally on the mend. Their belief is duly supported by the surge in growth figures and a steady decline in unemployment rates.
However, despite the pretty picture being painted by economists, there is no doubt that there are still problems. The numbers of job-less, while lower than in the past decade, are still relatively high.
Another problem plaguing the economy is the fact that the inflation remains far too low. The problem posed by low inflation makes it extremely difficult for the central bank to respond in the case of an economic downturn.
Thus, while the ECB is certain to be pleased with the state of the economy this year, it is likely to remain cautious.
The ECB has stated that it will continue to offer low interest rates and “quantitative easing” to the public. The Bank is hopeful that this will help prices rise faster in the time to come.
Reports have estimated that inflation in the Eurozone has fallen to 1.4% in October. This is an improvement from the 1.5% registered for September and is well within the 2% target set by the ECB.
Thus while the ECB has refused to celebrate peremptorily, they are cautiously hopeful that the economy has taken a turn for the better.