BRUSSELS, April 30, 2017 (WAM) – The European Statistical Office, Eurostat, said that gross domestic product in the euro area rebounded sharply, growing by 0.3% compared to the previous quarter, and inflation stabilized at 2.4% on an annual basis in April.
Europe emerges from recession in the first quarter, with stronger growth than expected, while inflation is under control.
Economic analysts on average expected economic growth of 0.1% in the first three months of the year.
Overall, the European economy has been stuck in recession for a year and a half.
From January to March, all major countries in the region performed positively with growth in Spain (+0.7%), Italy (+0.3%) and Germany and France, the two largest economies in the bloc, recording growth of 0.2%.
The improvement on the growth front comes as consumer price inflation in April stabilized at 2.4% year-on-year in the 20 countries sharing the single currency, as analysts had expected.
This increase therefore remains close to the European Central Bank’s target of 2%, which would reinforce its desire to lower interest rates.
The European Central Bank is expected to cut interest rates for the first time in June, according to recent statements by its officials.
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