Brussels, July 31 Seasonally adjusted GDP increased by 0.3 per cent in both the eurozone and the European Union (EU) area in the second quarter of 2024, compared with the previous quarter, according to preliminary data released by Eurostat.
In the first quarter of 2024, GDP had also grown by 0.3 per cent in both regions, the statistical office of the EU reported on Tuesday.
Germany's output contracted by 0.1 per cent in the second quarter, according to Eurostat data. France and Spain experienced growth of 0.3 per cent and 0.8 per cent, respectively. The highest growth rate was recorded in Ireland, with a 1.2 per cent increase in the second quarter, Xinhua news agency reported.
Conversely, Latvia experienced a notable decline of -1.1 per cent, with Sweden and Hungary also reporting negative growth.
Bert Colijn, a senior economist at ING, remarked that although the Eurozone economy grew faster than expected in the second quarter, the recovery remains cautious, supported by low unemployment and reduced inflation. Colijn also said that there are no signs of further acceleration in the Eurozone's economic growth.
"The differences within the eurozone remain striking," Colijn said, noting that Spain continues to be the eurozone's growth engine, while France also looked healthier than expected in the second quarter, although this was mainly due to one-off export effects.
"Germany remains the weak link in this post-pandemic economy, and the overall performance is lacklustre without Spain's contribution," he added.
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