Eurozone: a revival in investment


First-quarter Eurozone GDP growth has been revised upwards to 2.3% from 1.8% on a quarterly annualised basis. The breakdown published last week showed another good quarter for investment expenditure following very healthy progress in the previous period. Year-on-year, investment growth now stands an historical 6.0%, its strongest level since 2007.


Until now, the Eurozone’s economic upturn was fuelled by consumption but it is now aided by an investment revival. This is a significant change because stronger investment raises an economy’s potential GDP which then generates virtuous circles. A healthy growth outlook and improving corporate profitability should sustain the positive trend.

The opinion expressed above is dated June 13th, 2017, and is liable to change.

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