Page 25 - ARUBA TODAY

BUSINESS Wednesday 31 January 2018
A25

Eurozone economy enjoys its best year in a decade

By PAN PYLAS its economic growth ap-
Associated Press pear wide of the mark.
LONDON (AP) — The euro- And the wider global
zone economy, for so long economy — in particular
a source of uncertainty, trade — is also on the up,
has enjoyed its best year of supporting the eurozone’s
growth in a decade, clear exporters. That combina-
evidence it has broken out tion of positive factors is
of the prolonged debt cri- expected to hold in 2018
sis that raised fears about and growth is anticipated
the very survival of the euro to come in around 2017’s
currency. level. Potential headwinds
In its first estimate for the include the recent rise in
fourth quarter, Eurostat, the the value of the euro, par-
European Union’s statistics ticularly against the dollar,
agency, said Tuesday that which makes eurozone
the 19-country single cur- exports less competitive
rency bloc expanded by in international markets.
0.6 percent in the October- Following the growth fig-
December period from the ures, the euro advanced
three months before. further towards its recently
That more-than-healthy hit three-year high-rate
level of growth means that against the dollar, and was
for the whole of 2017, the trading 0.2 percent firmer
eurozone economy ex- at $1.2413.q
panded by 2.5 percent. A man watches the sun rise over the buildings of the banking district in Frankfurt, Germany,
That was up from 2016’s Tuesday, Jan. 30, 2018.
1.8 percent growth and Associated Press
marked the eurozone’s of the public finances in a tion of the reform-minded movements in elections
best performance since number of member econo- President Emmanuel Ma- in 2017, such as in France
2007, when it grew 3 per- mies. cron last May, growing 1.9 and the Netherlands, for
cent. And for the second Four countries — Greece, percent in 2017, its highest the more benign eco-
year, the eurozone even Ireland, Portugal and Cy- level since 2011, largely nomic environment. That
grew faster than the U.S., prus — had to be bailed thanks to investment. has eased fears about the
which expanded by 2.3 out by their partners in the As well as a strong “core,” prospect of anti-euro politi-
percent in 2017. eurozone and the Interna- growth is better also in cians taking the helm and
“Economic growth has tional Monetary Fund, and those countries that were reigniting concerns about
shifted to a substantially in return they made deep at the forefront of the cri- the euro’s future.
faster growth path over budget cuts to get their sis. And that’s helped bring Meanwhile, the recovery
the course of 2017,” said public finances into shape, down unemployment in has been boosted by the
Bert Colijn, senior eurozone hitting their economies the bloc to a near nine- European Central Bank’s
economist at ING. “While hard. The Greek economy, year low of 8.7 percent, a massive stimulus program
detailed breakdowns have for example, shed around development that has the and its move to slash in-
yet to be released, it seems a quarter of its output, and potential to further rein- terest rates. Predictions
that the eurozone econo- saw unemployment and force the recovery in the that Britain’s vote to leave
my continues to fire on all poverty levels ratchet high- year ahead. the European Union could
cylinders.” er. Many credit the defeat of entice other countries to
In the decade since 2007, With fears of a breakup several populist political leave the bloc or even hurt
the eurozone has had to of the eurozone largely
grapple with one crisis after evaporated, confidence
another, starting with the fi- across the bloc has risen.
nancial crash of 2008 that That’s evident in the fact
prompted the deepest that growth isn’t just reliant
worldwide recession since on the big economies of
World War II. That exposed Germany and France. The
the weak underbelly of latter has notably picked
the eurozone — the state up steam since the elec-