Gross Domestic Product – Euro-zone

Measure of the total value of goods and services produced by Euro-zone nations. GDP is the most comprehensive measure of economic output and provides key insight as to the driving forces in the economy.

Due to this report’s lack of timeliness and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, especially if it upsets expectations. The GDP growth rate serves as a broad indicator for the health of Euro-zone economies. Robust GDP growth signals a heightened level of economic activity, which is generally positive. At the same time, economic expansion raises concerns about inflationary pressure, which can prompt the European Central Bank to increase interest rates. Consequently, positive GDP readings are generally bullish for a given currency, while negative readings are bearish.

The headline figure is the annualized percentage growth rate from the previous quarter. The figure is calculated as

GDP = C + I + G + (EX – IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

Technical note : GDP is the total market value of goods and services produced in Euro Zone within a given period after deducting the cost of goods and services used up in the process of production. Therefore, GDP excludes intermediate goods and services and considers final aggregates only. The Euro Zone GDP figures are released in seasonally adjusted current prices, seasonally adjusted constant prices, and non-seasonally adjusted constant prices.

Relevance: Tends to move markets on release
Release Schedule : 9:00 (GMT); quarterly, about two months after the quarter
Source of Report : Eurostat
Web Address : http://ec.europa.eu/comm/eurostat
Address of Release : http://ec.europa.eu/comm/eurostat
Refer Euro-Indicators > National Accounts > Gross Domestic Product
A.K.A. GDP

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