Last year's European Union (EU) economy in 2017 was recorded at the fastest pace in a decade, based on the confirmed EU statistics office Eurostat. The 28-member EU has increased 2.5% in 2017 to become the strongest performer since 2007 or grow 2.7%. As reported by the BBC on Wednesday (14/2) in the last three months, both the EU and Euro Zone with 19 countries grew by 0.6% compared to the previous quarter. This is reflected in the EU's largest economic growth, Germany, which increased by 0.6% in the last quarter of 2017.
France's economy also rose by 0.6% while Spain's growth was at a stronger 0.7% level. Overall in 2017, the euro zone grew by 2.5% where Eurostat explained the fastest growth rate since a 3% increase in 2007.
This latest figure confirms the flash forecast published by Eurostat at the end of January, which is based on more limited data. Investec economist Ryan Djajasaputra said most of the growth last year was driven by four core euro zone countries such as Germany, France, Italy and Spain.
However, Eastern European economies, including Latvia and Slovakia, are also growing very fast. He further linked the strength of the eurozone to the European Central Bank's stimulus policy, which has lowered borrowing costs in recent years.
In addition, Investec Economist Ryan added, there is confidence to reach a record since the crisis in a few years in the eurozone and the unemployment rate dropped to pre-crisis levels. Standard Chartered's European Standard Economist Sarah Hewin explained that strong global growth also helped European exporters. "On the domestic side, wage increases, low inflation and record levels boost consumer spending, while investment is rising, helped by strong corporate profitability and increased confidence," he said.
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