Eurozone Economic Momentum Gathers Pace

Reports have surfaced this month that suggest that the momentum of economic growth in the Eurozone is gathering pace. What does this mean for the UK economy and business acquisition as 2014 unfolds.

Eurostat, The EU’s office dedicated to statistics released figures last week that suggest that in particular Eurozone GDP growth is speeding up, aiding in economic recovery. These figures specifically show that the Eurozone economy experienced a growth rate of 0.3% in the final quarter of 2013.

This growth rate saw a jump from the 0.1% recorded in the previous quarter, and together they signify the longest period of economic growth since the onset of the recession, which lasted 18 months. The recession was in fact the longest period of economic contraction in the EU single currency era.

What added to this news that December alone stood at a higher rate of growth than the entire quarter. The Eurozone measured together, including the UK which has recorded stronger rates of GDP growth than most EU states, a growth rate of 0.4% in GDP for December.

However there’s a mixed message as Eurostat recorded a contraction of 0.4% for the Eurozone for the entire year. However Europe as a whole, including non-Eurozone countries recorded a total GDP growth rate of 0.1% for 2013.

Chris Williamson, chief economist of Markit was reported by the BBC to have given his thoughts on what these figures mean. He said that they indicate that “the Eurozone's recovery has moved up a gear." The Eurozone has been thought to be in recovery for the last year.

He then elaborated on what this means, saying that "not only has the pace of growth picked up to the fastest since the second quarter of 2011, but the recovery is also becoming more broad-based, encompassing core and so-called 'periphery' countries alike."

What this means is that not only is the economic recovery getting stronger, everybody is recovering. It’s not just affecting traditionally strong economies such as the UK, France and Germany. Those such as Ireland, Italy and Greece that suffered severely from the recession are recovering as well.

This all underscores the fact that the British economy is finally in sustained recovery. Not only is GDP stronger, indicating a greater flow of money that can strengthen the nation’s economic power, but the UK’s trading partners are recovering as well, providing a greater scope for business opportunity.

At RTA Business we understand the importance that the strength of the UK and EU economies has for buying businesses. The stronger the economy, the more likelihood there is of expansion, meaning the more likely you are to be able to sell your business to someone looking to expand for a profit.