Eurozone GDP remained positive in the second quarter, but expansion was limited.
Specifically, preliminary data released by Eurostat showed that eurozone and EU GDP grew by 0.3% quarterly, and by 0.3% in the first quarter of this year, but expectations are kept low as it does not seem like it will be long before the economy falls into recession again.
The GDP data is the first indicator for the ECB, which has so far focused on the evolution of price pressures rather than growth concerns, but that balance could shift. At its last meeting, the ECB highlighted near-term growth concerns, so markets will be watching closely for reasons to price in faster rate cuts. Earlier, French GDP data came in slightly above expectations, continuing to signal a gradual recovery in the eurozone's second-largest economy.
German GDP contracted in the second quarter, casting a shadow over the resilience of growth in the region's three second-largest economies. GDP fell 0.1% in the three months to June, a result predicted by only one of 35 economists surveyed by the – In contrast, France and Spain both grew better than expected, while Italy slowed slightly to just 0.2% growth.
– The post Modest growth of 0.3% in the eurozone: France and Spain up, Germany down appeared first on ProtoThema English
