The 2016Q3 GDP data indicated that the Euro Area economy is more resilient than expected. The moderate expansion continues, despite the clouds at the horizon. Core inflation – that is inflation excluding energy prices, instead, still fails to pick up again. 

Output grew in Germany, the Euro Area economic engine, by 0.2% points compared to Q2. Numbers are not homogeneously interpreted: according to the German Council of Economic Experts the economy is at risk of overheating and is an expansionary path that could cause a painful recession down the road. Others believe instead that the expansion should be further encouraged, also to help the Eurozone periphery to rebalance.