ANALYSIS: Tentative signs of life in eurozone economy

The latest eurozone GDP data show that the economy expanded by 0.3% in the fourth quarter of 2014. For the full year 2014, the eurozone economy grew by a very modest 0.9%.

However, this did represent an improvement compared to the GDP declines of 0.6% and 0.4% recorded in 2013 and 2014, respectively. The Q4 data suggest that growth is broadening. Both consumer spending and investment rose by 0.4%.

Net trade also contributed to growth, with exports rising by 0.8%, no doubt helped by the weakening euro. Indeed, but for a fall in inventories, GDP would have risen by 0.5% in the quarter.