Eurozone GDP growth boosted by energy prices

Brussels  – Gross domestic product (GDP) in the eurozone grew by an estimated 0.6 per cent during the third quarter of 2017 while inflation dipped slightly, according to Eurostat, the statistical office of the European Union.

Compared with the same quarter of the previous year, seasonally adjusted GDP grew by 2.5 per cent in the eurozone.

This puts annual growth in the eurozone below US economic growth in the third quarter, where the Commerce Department recorded an annual growth of 3 per cent.

EU outpaces Britain

The eurozone however outpaced Britain where the economy expanded by 0.4 per cent between July and September, and where annual growth was at 1.5 per cent, according to the National Statistics office.

Annual inflation in the 19-country euro area was at 1.4 per cent in October, slightly down from 1.5 per cent in the previous month, according to a preliminary estimate by Eurostat.

Main drivers

Energy prices were the main drivers behind the October figures, with an increase in prices of 3.0 per cent, according to the data also released Tuesday. Food, alcohol and tobacco grew at a rate of 2.4 per cent, 0.5 per cent higher than in September.

The annual inflation target set by the European Central Bank is 2 per cent.