Euro Zone recovery gathers momentum

Whisper it quietly but the economic upturn in the Euro Area seems to be gathering some momentum. Unemployment is now at a seven year low - although it remains stubbornly above levels in the UK for example, and real GDP growth is being supported by the continued policy of ultra low interest rates and a weaker Euro.

A quick heads up on some of the key data:

Unemployment

• The euro area unemployment rate was 9.5% in March 2017 down from 10.2% in March 2016. This is the lowest rate recorded in the euro area since April 2009. 
• Over the last year, unemployment has fallen in 23 of Europe's 28 member states
• The lowest unemployment rates in March 2017 were in the Czech Republic (3.2%), Germany (3.9%) and Malta (4.1%). The highest unemployment rates were in Greece (23.5%) and Spain (18.2%).

Inflation

• A year ago there were more Euro Area countries in deflation than with prices rising.
• Euro area annual inflation was 1.9% in April 2017. In April 2016 the rate was -0.2%. 
• The move away from deflation has been helped by a weaker Euro against the US dollar

Economic growth

• Seasonally adjusted GDP rose by 0.5% in the euro area during the first quarter of 2017 and real GDP rose by 1.7% in the euro area over the preceding twelve months

Fiscal deficits

• Stronger economic growth and falling unemployment is helping many Euro Area governments to make progress in cutting their fiscal (budget) deficits.
• Some Euro Area governments are running budget surpluses - these include Luxembourg (+1.6%), Malta (+1.0%), Sweden (+0.9%), Germany (+0.8%), Greece (+0.7%), the Czech Republic (+0.6%). In contrast, Spain (-4.5%), France (-3.4%) both have fiscal deficits above 3% of GDP.

National debt

• At the end of 2016, the lowest ratios of government debt to GDP were recorded in Estonia (9.5%), Luxembourg (20.0%), Bulgaria (29.5%), the Czech Republic (37.2%), 
• Sixteen Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (179.0%), Italy (132.6%), Portugal (130.4%), Cyprus (107.8%) and Belgium (105.9%).

Note: Euro Area: 

The euro area includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.