Eurozone Q4 GDP up 0.5%, in line with expectations

The eurozone’s gross domestic product rose by 0.5% in the fourth quarter compared to the three months to September and 1.8% from the same quarter in 2015, according to a flash estimate by Eurostat.

The figures were in line with economists’ expectations.

In the third quarter of 2016, GDP had grown by 0.4% on the quarter and 1.8% on the year.

In the EU-28 group of nations, GDP rose by 0.6% on the quarter and 1.9% on the year. GDP had grown 0.5% and 1.9%, respectively, in the third quarter.

Over the year as a whole, GDP grew by 1.7% in the euro area, down from a five-year high of 1.9% in 2015 but ahead of US growth of 1.6%. In the EU-28, GDP was up by 1.9% for the year.

Howard Archer at IHS Global Insight said: “No component breakdown was provided of eurozone GDP in the fourth-quarter but we expect growth was very much domestic-demand led, with consumer spending playing a key role. Certainly, this was true of France, where consumer spending rose 0.6% quarter-on-quarter."