Euro Zone Witnesses Better Economic Performance
Published By : 16 Feb 2015 | Published By : QYRESEARCH
As per latest industry estimates, over the last three months the Euro zone has exhibited a strong rate of economic growth of about 0.3%. This figure exceeded the expectations of analysts. This rate of growth can be attributed to Germany’s favorable economic performance. Germany, which is the largest economy within the eurozone, reported a quarterly growth of 0.7%, thereby going beyond analysts’ expectations. However, the rate of growth reported by France at the same time was a mere 0.1%.
The statistical figures as released by the Eurostat agency show that during the entire period of 2014, the eurozone grew by only 0.9%. According to Federal Statistical Office, during the last quarter of 2014 the German economy shrank by about 0.1%. However, the economy was back on tracks because of robust growth in domestic demand. As a result, the economy reported a rise of 1.6% in its overall rate of growth last year. One of the main factors for business optimism is that the German economy is mainly fueled by the performance of the domestic economy.
According to business analysts and economists, factors such as purchase of government bonds by the European Central Bank, declining oil prices, and weakening euro exchange rate will gradually enable Germany’s economy to withstand several short term obstacles and risks. It is expected that in the initial time period of 2015, these risks will remain more or less subdued, however by mid 2015, the growth rate in Germany will be perhaps a bit more than 2%. Cyprus, Finland, and Greece were three main countries amongst the other remaining eurozone countries that reported a declining rate of economic growth.