Between July and September, the economy of the single currency countries grew by 1.7%, slowing down compared to the first half, when the euro zone grew by 2.3%. Growth in the third quarter is the lowest since the fourth quarter of 2014, according to Eurostat's rapid estimate published on Tuesday, October 30.
"Compared with the third quarter of 2017, the euro area gross domestic product (GDP) increased by 1.7% year-on-year," notes the Brussels statistics office, noting that in the European Union In the third quarter of this year, GDP grew 0.3% compared to the previous quarter and increased by 1.9% compared to the third quarter of 2017.
According to the preliminary rapid estimate published by Eurostat, GDP in the euro area and the European Union increased by 0.2% during the third quarter of 2018 in seasonally adjusted terms, as compared to the previous quarter and in seasonally adjusted figures . It comes after the International Monetary Fund (IMF) has revised downward the economy's growth estimate for the euro zone as a whole to 2% this year and to 1.9% next year.
According to the World Economic Outlook (WEO), a report with economic forecasts released on October 9, the IMF now estimates that the GDP of the euro zone will increase by 2% in 2018, against the previous estimate of 2, 4%. The IMF justifies the new forecasts with slower growth in exports after a strong increase in the last quarter of 2017, while energy prices have helped to reduce the demand of importers and also that some countries have been affected by political uncertainty.
Also of the Organization for Economic Co-operation and Development (OECD) which has already revised down the GDP of the Eurozone twice this year. In the latest estimate, released in September, the OECD revised downward prospects for world economic growth to 2018 and 2019, to 3.7% in the two years – one and two tenths lower, respectively, compared to previous estimates. The OECD has warned that there are signs that the global GDP advance has already reached its maximum.
In the internal prospects report, which reviews the half-yearly forecasts released in May, the OECD underlines that this growth of 3.7% for 2018 and 2019 is one-tenths lower, respectively, compared to estimates calculated less than four months ago.