Eurozone and European Union Q2 2019 growth slows to just to 0.2% (QoQ); Quarterly growth slowest in 5 years

Seasonally adjusted Gross Domestic Product (GDP) rose by 0.2% in both the Eurozone (EA19) and the European Union (EU28) during Q2 2019, compared with Q1 2019, according to a preliminary estimate published by Eurostat. Quarterly growth is now slowest in 5 years.

Eurozone European Union GDP Growth until Q2 2019

In Q1 2019, GDP had grown by 0.4% in the Eurozone and by 0.5% in the European Union. Compared with Q2 2018, seasonally adjusted GDP rose by 1.1% in the Eurozone and by 1.3% in the European Union in Q2 2019. In the previous quarter, annualized GDP had grown by 1.2% in the Eurozone and by 1.6% in the European Union.

EU Eurozone Q2 2019 GDP growth

 

Unemployment at 11 year low but slowing inflation

Eurozone unemployment hit a 11-year low at 7.5% at the end of June 2019.

Year-on-year inflation is currently just 1.1%, at a 17-month low and much lower than the European Central Bank’s (ECB) target of close but below 2%.

 

Stimulus ahead?

Outgoing ECB President Mario Draghi last week said that the bank will look to ease policy further at the September meeting as the growth outlook deteriorates quickly.

The market expects an interest rate cut in September and Quantitative Easing to resume. Negative interest rates ahead …

 

The Eurozone or Euro area (EA19) currently includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

The European Union (EU28) currently includes Belgium, Bulgaria, Czechia (formerly the Czech Republic), Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden and the United Kingdom.

 

Related:

U.S. Q2 2019 GDP growth estimated at 2.1% as personal consumption soars

The European Central Bank or ECB balance sheet is 4.7 trillion Euros or over 40% of Eurozone GDP (July 2019 edition)

Here’s how the European Central Bank or ECB could unwind or reduce its balance sheet plus what is the new normal for the ECB?

The Real Economics of Brexit

 

 

 

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