Economic growth weaker than expected in the euro zone in the 2nd quarter

Weaker than expected economic growth in the euro zone in the 2nd quarter

Figures released Wednesday by Eurostat show that economic growth continues in the euro zone, but is less than expected.

Economic growth in the euro zone in the second quarter was revised down slightly to 0.6% from the previous quarter, which remains a slight acceleration, while employment lost momentum on the same period (+0.3%), according to figures from Eurostat published on Wednesday.

In a first estimate published at the end of July, the institute had d' First estimated at 0.7% the growth of the gross domestic product (GDP) of the 19 countries sharing the single currency, marking a strong improvement after a growth of 0.5% in the first quarter.

Year-on-year, this translates over the April-June period to growth of 3.9% compared to the second quarter of 2021 (compared to 5.4% in the first).

Performances that place the euro zone well beyond the United States, which saw its GDP contract in the second quarter by 0.9% at an annualized rate, after having already recorded a sharp decline of 1.6% in the first.

Despite the surge in inflation against the backdrop of the war in Ukraine and contrary to the concerns of economists, the euro zone benefited from continued sustained activity, driven in particular by the improvement in the financial sector. services, in particular tourism, thanks to the lifting of restrictions linked to the pandemic.

Within the European bloc, the situation remains contrasted, however, with strong growth in Spain (1 .1% on a quarterly basis), in Italy (1%) and in France (0.5%), but sluggish in Germany, Europe's largest economy (0%), according to updated figures from Eurostat.

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At the same time, employment has slowed somewhat: the number of people in employment increased by 0.3% in the euro area in the second quarter compared to the previous one , after an increase of 0.6% in January-March. This represents an increase of 2.4% year-on-year, after a rise of 2.9% in the first quarter.

For the whole of the European Union , economic growth stood at 0.6% in the second quarter compared to the previous one, the same level as in the first three months of the year, thus marking a stabilization of activity.< /p>

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