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| European Union grows at fastest pace for 10 years | European Union grows at fastest pace for 10 years |
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| The European Union economy grew at its fastest pace in a decade last year, figures from the EU statistics office Eurostat have confirmed. | The European Union economy grew at its fastest pace in a decade last year, figures from the EU statistics office Eurostat have confirmed. |
| The 28-strong EU expanded by 2.5% in 2017, its strongest performance since 2007, when it grew by 2.7%. | |
| In the final three months both the EU and the 19-nation eurozone grew by 0.6% compared with the previous quarter. | In the final three months both the EU and the 19-nation eurozone grew by 0.6% compared with the previous quarter. |
| That was mirrored by growth in the EU's biggest economy, Germany, which grew by 0.6% in the final quarter of 2017. | |
| France also expanded by 0.6%, while Spanish growth was a notch stronger at 0.7%. | |
| Overall in 2017, the eurozone grew by 2.5%, Eurostat said, the fastest growth rate since a 3% rise in 2007. | Overall in 2017, the eurozone grew by 2.5%, Eurostat said, the fastest growth rate since a 3% rise in 2007. |
| These latest figures confirm the flash estimates published by Eurostat at the end of January, which were based on more limited data. | |
| Investec economist Ryan Djajasaputra said much of the growth last year had been driven by the eurozone's core four economies: Germany, France, Italy and Spain. | |
| However, Eastern European economies, including Latvia and Slovakia, were growing "particularly fast", he added. | |
| He attributed the strength of the eurozone to the European Central Bank's stimulus policies, which have brought down the cost of borrowing in recent years. | |
| In addition, he said confidence had been hitting record levels since the crisis years in the eurozone and unemployment was down to pre-crisis levels. | |
| 'Headwinds' | |
| Sarah Hewin, chief economist Europe at Standard Chartered, said: "Activity is being supported by strong global growth, which is helping European exporters. | |
| "In terms of domestic factors, rising wages, low inflation and record-level employment are driving consumer spending; meanwhile, investment is rising, helped by strong corporate profitability and buoyant confidence." | |
| However, while she expected eurozone economic growth to stay strong, "higher energy prices and a stronger euro may be headwinds to growth this year". | |
| Standard Chartered is forecasting eurozone growth of 2.2% in 2018 and 2% in 2019. | |
| "On the political front, uncertainty may build around Italy's general election next month; and if the UK leaves the EU without a transition arrangement, that could undermine euro-area exports next year," added Ms Hewin. |