Eurozone economy grows faster than UK’s

The eurozone economy has grown twice as fast as the UK in recent months, according to official figures released by the EU’s statistics agency Eurostat.

The data show that GDP in the 19 countries that use the euro expanded 0.6% in the second quarter of 2017, building on growth of 0.5% in the first quarter.

In the UK, the latest official figures released last week showed the economy grew by just 0.3% in the second quarter of 2017 following 0.2% expansion in the first three months of the year.

As reported by The Guardian, growth has quickened and unemployment has fallen in the Eurozone against the backdrop of ultra-low interest rates and other measures by the European Central Bank (ECB) to boost activity.

Eurostat said second-quarter GDP was up 2.1% compared with a year earlier, the fastest growth since 2011 and in line with forecasts by economists in a Reuters poll.

Bert Colijn, a senior eurozone economist at the bank ING, said the bloc had enjoyed a "surprisingly strong” first half to 2017.

Nevertheless, some business surveys have suggested growth in the UK could quicken in the second half.

Rob Dobson, an economist at the survey’s compilers, IHS Markit, said UK manufacturing – which makes up a tenth of the UK economy – had started the third quarter on a solid footing.

He highlighted particularly solid growth in UK exports, which have been made more competitive by the pound’s sharp drop after the Brexit vote and have benefitted from a strengthening global economy.

"Although the exchange rate remains a key driver of export growth, manufacturers also benefitted from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions,” Dobson said. "Continued expansion is also still filtering through to the labour market, with the latest round of manufacturing job creation among the best seen over the past three years.”