Eurozone has grown faster than the UK in five out of seven quarters since the EU referendum
Commenting on today’s Eurozone GDP flash estimate for Q1 2018, Barret Kupelian, senior economist at PwC, said:
"Today’s flash estimate of Eurozone GDP growth for the first quarter of 2018 shows that the bloc as a whole grew by 0.4% quarter-on-quarter. This is broadly in line with expectations but slower than the 0.7% growth rate recorded in Q4 2017. However, these preliminary Eurozone figures are likely to be revised once national authorities release their data.
"This was the fifth out of seven consecutive quarters that the Eurozone grew faster than the UK following the EU referendum. This suggests that the UK has not been able to reap the full benefits of an upturn in global economic activity unlike other large economies like the Eurozone and the US (see Figure 1).
"This now means that the UK has been the slowest growing economy relative to the US and the Eurozone for the fourth consecutive quarter - something last experienced 12 years ago.
"France is one of the larger economies that has released a more detailed breakdown of economic activity in Q1. Overall, the French data shows its economy grew by 0.3% quarter-on-quarter. The most marked change was that net exports did not contribute to overall headline growth. This could be part of a wider trend, with some national and Eurozone wide surveys pointing to a softening of sentiment particularly in the industrial and services sectors. It is currently too soon to tell whether this is temporary."
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