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Eurozone | Robust growth in early 2017 and still low core inflation

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After growing at 0.4% in 4Q16, our MICA-BBVA model continues to estimate a quarterly GDP growth in the eurozone of 0.5% QoQ in 1Q17 and puts a slight upward bias to our projection of 1.6% for this year. Confidence indicators reflect this mood better than activity data. Finally, despite the 2.0% YoY headline inflation in February, core measures remain subdued at 0.9% YoY.

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