BRUSSELS, April 30 — The eurozone economy expanded by a better than forecast 0.4 per cent in the first quarter of 2019, official data showed today, dampening talk that a recession in Europe is around the corner.
The reassuring announcement broke a series of worrying economic figures for Europe that showed a lacklustre economy beset by looming political risks such as Brexit and weaker global growth.
The figure exceeded the expectations of analysts interviewed by data company Factset that forecast just 0.3 per cent growth.
At an annual rate, growth in the 19 countries that use the euro was 1.2 per cent, the same result as in the previous quarter, according to the first estimate of the European statistics agency.
Analysts warned, however, that the uptick in eurozone growth would not last.
“The continued weakening of the timelier survey indicators suggests that the pick-up in euro-zone GDP growth will not be sustained,” said Jack Allen of Capital Economics.
“We still think that the economy will grow more slowly in the second quarter and expand by less than most forecasters expect in 2019 as a whole,” he added.
Eurozone unemployment meanwhile dropped to 7.7 per cent in March, down from 7.8 per cent in February and from 8.5 per cent in March 2018.
This is the lowest rate recorded in the euro area since September 2008.
Unemployment in the euro area has fallen steadily since September 2016, when it dropped below the symbolic threshold of 10.0 per cent.
It is close to the average rate before the 2007-2008 financial crisis, where it stood at 7.5 per cent.
At the worst of the debt crisis, unemployment had reached a record high of 12.1 per cent in April, May and June 2013 in the euro area. — AFP
