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Investment in equipment and buildings was the key driver of growth in the eurozone in the final three months of 2015, helping to offset a second consecutive negative contribution from trade. Eurostat confirmed on Tuesday its earlier estimate that the economy of the 19 countries sharing the euro zone grew by 0.3 percent in the October-December period, while revising up its year-on-year growth figure to 1.6 from 1.5 percent.
In the previous three months, the economy also grew by 0.3 percent month-on-month and by 1.6 percent from a year earlier. For the year as a whole, GDP rose by 1.6 percent, compared with 0.9 percent expansion in 2014. Gross fixed capital formation added 0.3 percentage points to the final outcome in the fourth quarter, with 0.1 point contributions from inventory changes, household spending and government consumption. Gross fixed capital investment includes machinery purchases, land improvement and the construction of infrastructure and buildings. However, foreign trade subtracted 0.3 percentage points as imports increased by more than exports.

Copyright Reuters, 2016

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