Economic Buzz: Euro Area Economic Strength Seen Holding Up

The Euro area is set to continue its expansion on global economic activity growth and export demand, according to Eurozone Economic Outlook jointly published by Ifo Institute, Italys statistical office Istat and the KOF Swiss Economic Institute. Gross domestic product is estimated to rise 0.6% each in the first and second quarters of 2018. However, it is expected to slow slightly to 0.5% in the third quarter. The main force behind the expansion in economic activity will be investment, driven by favorable financing conditions and still upward trending capacity utilization, institutes said. Private consumption expenditures are also expected to grow robustly still supported by the improvements in the labor market.