You are here: Home - Investing - Experienced Investor - News -

Markets jump as eurozone GDP growth surprises in Q4

Written by: Alice Rigby
The eurozone economy beat growth expectations in the last quarter of 2014, buoyed by a resurgent Germany.

The eurozone posted GDP growth of 0.3 per cent in Q4, against 0.2 per cent growth in the previous quarter and 0.9 per cent over 2014 as a whole.

The German economy grew by 0.7 per cent over the quarter, far surpassing estimates of around 0.3 per cent, after contracting 0.1 per cent in Q3.

The figures mean the UK is no longer the fastest growing European country,recording 0.5 per cent growth in the final three months of last year.
Improving sentiment helped life European markets to record levels, with the German DAX hitting an all-time high of over 11,000 on Friday and the Stoxx Europe 600 reaching a seven-year high in early trading.

A ceasefire agreement in Ukraine and a revival of Greek bailout negotiations have also helped drive markets higher.

However, the story was not universally positive, with three countries, Finland, Cyprus and Greece, seeing their economies contract in Q4.
France and Italy also posted disappointing GDP growth. The French economy grew by just 0.1% over the same period while the Italian economy stagnated.

While growth in Europe is speeding up, it is still significantly behind the US economy which grew by 2.6 per cent in the fourth quarter, according to the Bureau of Economic Analysis’ advance estimate.

Ben Brettell, a senior economist at Hargreaves Lansdown, said: “This is the latest in a series of signs that the economic climate might be improving, and the European Central Bank’s quantitative easing programme might therefore benefit from a following wind.

“Most notably, the credit cycle appears finally to be showing improvement – after two-and-a-half years of contraction, eurozone bank lending to the private sector is growing again.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Inflation/deflation signpost
Low inflation prompts CBI to raise UK growth forecast

The Confederation of British Industry (CBI) has upgraded its UK growth forecast in the face of low inflation and falling...