Olivier and Mann – As the European Union’s economy brushed aside unpredictability over U.S. President Trump and Brexit, the bloc’s economic growth has gathered momentum and inflation has climbed nearer the European Central Bank’s (ECB’s) target. Employment has also improved to its best for seven years.
The Eurostat statistics agency said that growth in the block shot up in the final quarter of last year to 0.5% which was more than the 0.4% anticipated.
However, EU’s Economic Affairs Commissioner Pierre Moscovici still expressed his concern that the economic growth record is still not enough for the EU to be considered to have made a complete recovery.
The rebound, though strong for the fifth consecutive year, is still not enough to fill the necessary employment levels needed.
EU inflation climbed to 1.8 percent in January, a substantial rise from December’s 1.1 percent and will certainly lead the ECB to do what’s necessary to reduce its contentious stimulus programs as it reaches closer to its projected target of just below 2 percent.
In December, the unemployment rate within the bloc fell to its lowest since May of 2009.
Joblessness in the EU slid to a lower-than-anticipated 9.6 percent in December, with both Spain and Portugal showing big improvements in their employment numbers.
The EU’s statistical office also adjusted its November rate to 9.7 percent from the 9.8 percent which was first provided in December.
At the height of the financial crisis, joblessness in the Eurozone went up to over 12 percent.
The improvement of the job market will add to Germany’s encouraging that the ECB should end its huge financial program as soon as possible.
The ECB is now under mounting pressure to rescind its policies as early as possible following a string of positive financial indicators.
Germany has long been complaining about the ECB’s scheme, suggesting that the program badly affects savers.