Best Year in a Decade for the Euro Zone Economy
The euro zone economy has enjoyed its best year in ten years. It has clearly taken itself out of the clenches of prolong debt crises that had raised concerns of survival of the euro currency.
The Euro zone expanded by 0.6% on Tuesdayin the period of October-December from three months before in its first assessment for the fourth quarter as reported by European Union’s statistics agency Eurostat.
Senior Eurozone economist at ING Bert Colijn said that economic growth has taken up a significantly faster growth route over the course of 2017. He said that although a detailed breakdown is yet to be released looks like the Eurozone economy to grow healthily.
This sound growth level suggests that euro zone economy expanded by 2.5% in the entire 2017 which is quite promising and its best performance since 2007 when it grew by 3%. The euro zone grew faster than U.S. even which grew 2.3%.
Eurozone had to face one crisis after another since the year 2007 till a decade. The crisis began with the 2008 financial crash that triggered the deepest worldwide recession since the Second World War II. Cyprus, Greece, Ireland and Portugal had to be rescued by their Eurozone partners and the International Monetary Fund. They made major cuts in order to stabilize their public finances and the economies suffered a major blow. Greek economy almost shed about a quarter of its output due to which poverty levels and unemployment levels peaked.
The existential concerns regarding the euro have relaxed recently and Greece is all set to rise above victoriously from its bailout era, after eight years since it faced bankruptcy. As fears of euro zone breakup have diminished, across the bloc good spirits and confidence has risen which is evident from the boom of the economy.
The European Central Bank’s gigantic stimulus program has played a substantial role in its recovery as well as its efforts to cut down the interest rates.
As per the growth numbers, the euro has progressed towards its newly hit three year high rate against the dollar. It traded at 0.3% firmer at value of $1.2414.