Eurozone revival exceeds expectations, but chronic structural, cyclical issues remain

London

THE eurozone economy has exceeded the gloomy consensus forecasts that were prevalent 12 months ago, but deep-seated structural and cyclical problems remain.

Morgan Stanley, one of the few investment banks that were optimistic then, continues to predict reasonable growth in 2018. This time, the majority of economists and bankers agree.

The latest data is "indicative of a sustained eurozone economic recovery", said Oliver Kolodseike, a senior economist at the Centre for Economics and Business Research.

"With the unemployment rate inching down further and wage growth outstripping inflation, consumer spending should continue to support the eurozone economy in the coming months," he said.

On average, the 18-member eurozone nations grew by 2.6 per cent in most of 2017, according to official statis…