Eurozone Economy Grew Faster than Analysts Forecast in Third Quarter

Eurozone Economy Grew Faster than Analysts Forecast in Third Quarter

As Germany and France bounced back and Greece showed some signs of recovery, the eurozone economy improved faster than analysts estimate in the third quarter.

According to Eurostat, gross domestic product climbed 0.2% from the previous period, where it grew 0.1%.

The eurozone's revival has been in danger since economic malaise transferred from once crisis-stricken nations like Spain and Ireland to countries in the region's core. With inflation close to the lowest level in five years, the European central bank (ECB) is getting ready to include uncommon stimulus and asked governments to invest and deliver structural reforms to help in the growth.

Alexander Koch, economist at Raiffeisen Switzerland Cooperative in Zurich, said that they are beginning to see signs of improvement.

In Greece, a six-year recession brought down 25% of GDP and protests against austerity measures jeopardised the country's membership of the currency bloc. Greece recorded a quarterly increase of 0.7% in the three months through September, the third consecutive rise in output.

There is a possibility that the data may help Prime Minister Antonis Samaras, as he is putting efforts to follow Ireland, Portugal, and Spain out of its rescue programme.

Germany and France, the eurozone's two largest economies, came back to growth in the third quarter, with an increase of 0.1% and 0.3%, respectively. The only other member of the currency bloc to list a quarterly contraction was Cyprus.

To enhance growth and inflation, the Frankfurt-based ECB has already released a barrage of unconventional measures like a negative deposit rate, long-term loans, and asset purchases.

"The discussion about further monetary policy measures is justified, and we expect Mr Draghi will gain the upper hand", said Karsten Junius, chief economist at Bank J Safra Sarasin AG in Zurich.