Eurozone: a revival in investment

CHART OF THE WEEK

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.

OUR ANALYSIS

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.

This document is not pre-contractual or contractual in nature. It is provided for information purposes. The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS.


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Julien-Pierre Nouen

Directeur des études économiques et de la gestion diversifiée