Eurozone Q2 GDP Grows 0.4% as July Inflation Eyes 2.9%
Updated
Updated · DW (English) · Jul 30
Eurozone Q2 GDP Grows 0.4% as July Inflation Eyes 2.9%
3 articles · Updated · DW (English) · Jul 30
Summary
Eurostat’s preliminary estimate showed eurozone GDP rising 0.4% in Q2, up from flat growth in Q1 and double the 0.2% economists had expected.
Ireland’s 3.9% surge alone added 0.1 percentage points to eurozone growth, while Spain grew 0.7%; Germany, France and Italy each expanded just 0.2%, underscoring an increasingly uneven recovery.
Germany beat forecasts despite slowing from 0.4%, with net exports driving growth as consumption cooled and investment fell; France also returned to growth, but weak capital spending clouded the rebound.
July price data are now complicating the outlook: Germany’s headline inflation is estimated at 2.7%, Spain’s rose to 3.5%, and economists expect eurozone inflation to edge up to 2.9% from 2.8%.
That combination of firmer growth and renewed price pressure could keep the ECB open to another interest-rate increase after the summer.