According to the European Central Bank monthly statements, the ‘Private consumption has clearly recovered from the losses during the financial crisis’.
The growth was largely due to the labour market recovery, although unemployment in some countries remains higher than before the crisis.
Hence, businesses and households have increased their spending thanks to an increase of 7 million jobs from the crisis and a general improvement in the rate of wage growth.
The bulletin states that there is ‘still scope for further growth’, taking into consideration the negative effects of the global trade war. Growth slowed in the course of 2018, after having grown strongly last year. In the second quarter, the growth rate was 0.3 per cent, down from 0.7 per cent in the last quarter of 2017.
However, unemployment is now at 8.3% – the lowest level in almost 10 years.
Article from the ‘Financial Times’