European Union economy records fastest economic growth in a decade

European Union economy records fastest economic growth in a decade

Data from the European Union statistics office shows that the economy of the 28-member European Union grew by 2.5% in 2017, its best performance since it grew 2.7% in 2007 just before the financial crash threw global economies into recession.

UK GDP grew by 1.8% overall in 2017, the slowest rate of increase since 2012.

Q4 growth in Germany was 0.6%, France expanded 0.6% and Spain grew 0.7%.

Germany and France emerged again as the EU's main engines with respective national economic growth at levels unseen since 2007 when it reached 3.0% and policymakers might quickly interpret such development as the very end of the 2008 financial crisis in the EU.

Data were not available on the Czech Republic, Denmark, Greece, Croatia, Estonia, Ireland, Luxembourg, Malta, Slovenia and Sweden.

According to Eurostat's flash estimate published on Wednesday, growth was more marked when compared to the same periods in 2016.

The EU and the 19-nation eurozone both grew by 0.6% in the final quarter of past year.

In the final three months of 2017, the Lithuanian economy grew by 1.5% and Hungary's economy by 1.3%.

A stronger global economy has helped the Eurozone to an impressive performance during 2017, but "economists have been particularly cheered by the broad-based nature of growth, which has seen expansions in peripheral countries as well as the core large economies", reports City AM.

Djajasaputra said the growth could be attributed to the strength of the European Central Bank's stimulus policies, which have brought down the cost of borrowing. Rising wages, low inflation and record-level employment have also boosted consumer spending, which has in turn boosted investor confidence, he said.