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Eurozone robust growth to continue in Q2, says ECB

Staff Writer |
Eurozone's solid growth momentum is set to continue in the second quarter, mainly driven by domestic demand, the European Central Bank said in its latest economic bulletin released on Thursday.

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"Overall, incoming data point to solid growth in the second quarter of 2017," the bank said.

The 19-nation economy expanded 0.6% in the first three months of the year after 0.5% in the fourth quarter of 2016.

"The euro area economy has now expanded for four consecutive years and growth has become increasingly resilient as it has broadened across sectors and countries," the ECB said in the report.

The bank noted that the rebound in the euro area housing markets is increasingly supporting growth momentum.

The ECB also expects the recovery in business investment to continue to be supported by very favorable financing conditions and very accommodative monetary policy, among others.

Further, an improved external environment also led to a rebound in Eurozone export momentum, the report said.

While underlying inflation is yet to show any sign of an upward adjustment, there has been a build-up of pipeline pressures at the early stages of production and pricing chain, the bank said. Meanwhile, wage growth remains low, the report added.

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