The euro area economy grew as strongly in spring as it did in winter
The Eurozone's economy grew as strongly in the spring as it did in the winter. The gross domestic product (GDP) rose by 0.3 percent in the second quarter compared to the previous quarter, Eurostat announced on Wednesday in its second estimate. Economists had expected this initial estimate to be confirmed.
At the beginning of the year, the economy in the 20 countries of the monetary union also grew by 0.3 percent. Compared to the same period last year, Eurostat reported a 0.6 percent increase in economic output for the second quarter, which also confirmed the initial estimate.
There were clear differences in economic development among the four largest economies in the Eurozone. Spain's economy grew particularly strongly, with GDP increasing by 0.8 percent. France's economy grew by 0.3 percent, and Italy's by 0.2 percent. However, Germany's economy shrank, with its GDP falling by 0.1 percent.
German Federal Minister of Economics Robert Habeck said in Berlin that the stagnation was harsher than previously acknowledged. This was due, among other things, to the high dependence of the German economy on China, but also to a lack of investment in infrastructure and insufficient efforts to attract qualified immigrants. Now, investment stimuli are needed, said the Green politician, calling for the approval of the federal government's growth package in the Bundestag and Bundesrat. He also predicted: "Interest rates will go down in the second half of the year, I'm very sure of that."
The percentage of economic growth in the Eurozone compared to the second quarter of the previous year was a 0.6 percent increase. Despite this, Germany's economy showed a contrasting percentage, with a 0.1 percent decrease.
