GDP up by 0.6% in both euro area and EU28

GDP up by 0.6% in both euro area and EU28

While the European Union's statistics office Eurostat said on Tuesday gross domestic product in the eurozone rose 0.6% quarter-on-quarter in the three months to September and 2.5% year-on-year, the European Commission revised yesterday its overall growth forecast for the region to 2.2%, markedly higher for this and next year.

The euro zone's annual economic growth rate outstripped that of the United States in the third quarter setting up 2017 as the best year for the currency area since financial markets crashed a decade ago.

The euro zone economy grew by more than the USA in the third quarter compared with a year earlier, data showed today. GERMANY, ITALY, NETHERLANDS Euro coins are seen in front of a US one dollar banknote displayed in this picture illustration taken in Zenica, March 13, 2015.

The economy of Italy is seeing accelerating growth: 0.5% q/q, the highest since 2009.

By way of comparison, British GDP grew by 0.4% over the third quarter, up from 0.3% in the three months to June, and in the USA growth clocked in at 0.7% on the quarter, down from 0.8% for the three months to June. They have been revising their eurozone GDP projection for 2017 upwards since May this year and now expect a marginally stronger figure (2.3%) for 2017.

The euro-zone had already published an initial estimate of its growth rate for Q3, but this did not include the largest economy, Germany.

Next year, eurozone growth will remain solid as well, but should decelerate slightly to 2%.

The figures support the European Central Bank's move to begin reducing its bond-buying programme. This may provide some comfort after Italy was left out of the World Cup for the first time in 60 years.

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