Eurozone weekly economic briefing | GDP surprised on the upside

GDP for the eurozone surprised on the upside in Q3 with growth of 2.2% q/q, slightly up from Q2. The surprise came mainly from France and Italy, while Spain disappointed. Overall, the eurozone has had a relatively healthy summer, but it is now clear that growth will start to slow sharply in Q4.

What you will learn:

Driven up by energy prices and supply-side bottlenecks, inflation rose to 4.1% in October, its highest since 2008.
On the policy front, the ECB meeting yesterday did not bring any changes, leaving the December meeting as the key meeting for the future of the QE tapering.
Overall, our base-case scenario continues to see the ECB announcing the end of the PEPP in December and increasing the pace of APP purchases to preserve favourable financial conditions.