Euro area likely to post 1.6% growth next year

The final estimate of euro area Q3 GDP for 2015 remained same to the flash reading at 0.3% q/q. The  economic growth of the eura area dropped marginally from 0.4% in Q2 and 05% in Q1. 

Final consumption expenditure, the key driving factor of the GDP growth rate in Q3, contributed 0.4pp. The inventories contributed by 0.2 pp, whereas, net trade pull down the output by 0.3 pp. The negative net trade is due to ongoing slowdown in the emerging markets.

"Our 2015 and 2016 GDP forecasts are unchanged at 1.5% and 1.6%, respectively. We still project growth to average 1.8% in 2017", says Barclays in a research note.