EU GDP above pre-crisis level, but more to be done to reduce unemployment

The end of the first quarter provides a good opportunity to take stock and look back at how the EU economy is currently performing:

• First, EU businesses remain confident despite challenges and factors of uncertainty, with business confidence even picking up slightly. 
• Second, EU GDP is now 5% above 2008 levels. Higher confidence is also reflected in higher growth expectations. The Consensus Economics forecast for EU growth in 2017 was revised upwards from 1.5% in December to 1.7% in March.  
• Third, we have also seen further improvements in the labour market, with the number of unemployed going down by over a quarter of a million since December 2016.

Despite these positive indicators, unemployment is still 1.2 percentage points above pre-crisis levels and growth is still supported by temporary factors, such as a favourable exchange rate and actions of the European Central Bank. The continuing recovery is a window of opportunity which facilitates further necessary reforms.