The eurozone economy kept up its robust growth momentum in the third quarter with the annual economic growth rate outstripping that of the US.

Eurostat, the EU statistics office, last week confirmed a preliminary estimate that the eurozone’s GDP grew by 0.6 per cent during the July to September period compared to the previous three months. On a year-on-year basis, GDP was 2.5 per cent higher and exceeded the 2.3 per cent year-on-year growth rate for the US economy. This sets the stage for 2017 to be the best year for the currency area since the financial markets crash a decade ago. Germany was a major factor underpinning Europe’s growth engine, but even some of the bloc’s laggards, such as Italy, showed signs of recovery.

In the meantime, the average asking price for a house in the UK was down by 0.8 per cent in November, according to property tracking website Rightmove. This followed a 1.1 per cent increase in October. On a yearly basis, prices advanced by 1.1 per cent, slowing down from 1.4 per cent in the previous month.

Traditionally, house sellers cut asking prices in the pre-Christmas period but this year they appear to be holding a collective autumn sale, said the property website. The price cut will be seen as further evidence that the UK real estate market has slowed dramatically, particularly in London, where prices have been falling.

Finally, in the US, the House of Representatives easily approved a tax reform bill to cut taxes on businesses and individuals. However, the final passage of the legislation is still uncertain. The House voted 227 to 205 in favour of their tax reform legislation, known as the Tax Cuts and Jobs Act, with voting largely along party lines.

The legislation reduces the corporate tax rate to 20 per cent from 35 per cent, and lowers individual tax rates for low- and middle-income earners to 0, 12 per cent, 25 per cent and 35 per cent, while maintaining the 39.6 per cent rate for high-income Americans. The Bill also nearly doubles the standard deduction. Republicans have argued that the proposal simplifies the tax code.

This report was compiled by Bank of Valletta for general information purposes only.