Euro-Area Economy Offers Glimmers of Hope on ECB Meeting Day

Mar 07 2019, 10:53 AMMar 07 2019, 11:49 AMMarch 07 2019, 10:53 AMMarch 07 2019, 11:49 AM

(Bloomberg) -- The euro-area economy enjoyed broad-based growth at the end of last year that was only weighed down by a change in inventories.

Private and government spending accelerated, investment expanded at a solid pace and trade made a positive contribution to gross domestic product. Growth was confirmed at 0.2 percent in the fourth quarter, while a reading for the previous three months was revised down to 0.1 percent.

Paired with a pickup in employment and robust pay gains, the report offers some positive news for European Central Bank officials meeting in Frankfurt in an otherwise gloomy environment. President Mario Draghi is set to announce severe cuts to the 2019 outlook later on Thursday, reflecting deteriorating prospects for the global economy and a bout of external risks related to trade wars and Brexit.

Key Insights

Get More

ECB officials are discussing the design of new long-term loans to banks, according to people familiar with the matter. An announcement may come as early as Thursday.