Eurozone economy grows less than expected in Q4

  • Eurozone economy grows less than expected in Q4

Eurozone economy grows less than expected in Q4

Men work at the assembly line in the truck production plant of truck and bus-maker MAN AG in Munich, Germany July 30, 2015.

-EURUSD was little changed in Europe Tuesday despite news that the Euro-Zone economy grew by 0.4% month/month in the fourth quarter of 2016 rather than the 0.5% originally estimated. Still, it marked a sharp rebound after the German economy barely expanded over the summer months.

The central bank is injecting billions of euros into the economy every month and has also implemented ultra low interest rates.

Greece, which is once again in the headlines over debt troubles, previous year slipped out of recession, growing by 0.3%. Many economists have expressed concern about the long-term health of the German economy as its open door policies on immigration have cost the government billions of dollars.

The change is partly down to a dismal performance of industrial output, which had its biggest fall in more than four years in December.

On a year-on-year basis, growth for the 19 countries using the euro slowed to 1.7 percent from the 1.8 percent recorded in the third quarter.

The mood among German investors deteriorated more than expected in February, a survey showed on Tuesday, as uncertainties about the outcome of Brexit talks and future US trade policies cloud the growth outlook for Europe's biggest economy.

This was the highest annual inflation rate since July 2013.

By contrast domestic demand was stronger in the three top economies - Germany, France and Italy - but consumer spending is at risk from rising prices with inflation at 1.8 percent in January.

Economic growth in the 19-country eurozone was steady in the second half of 2016, despite a series of shocks to confidence, including the U.K.'s vote to depart the European Union and terrorist attacks in Germany, France and Belgium.