Eurozone growth weaker than expected

In the spring, the economy in the eurozone developed more slowly than was previously known. Economic output (GDP) rose by 0.1 percent in the second quarter compared to the previous quarter, as reported by the statistics authority Eurostat in Luxembourg on Thursday. A previous estimate had shown growth of 0.3 percent. Compared to the same month last year, the euro economy grew by 0.5 percent – instead of 0.6 percent as previously assumed.

Growth in the 20 euro countries was already weak in the winter months. In the first quarter, GDP also rose by 0.1 percent, after even shrinking slightly by 0.1 percent in the fourth quarter of 2022. The main burden is high inflation, which is dampening private consumption. In addition, the export-oriented industry is developing weakly due to the global economic downturn.

Little changed in these problems in the spring: private consumption stagnated, as reported by Eurostat. Foreign trade even had a negative impact, as exports fell significantly. On the other hand, public spending and investment spending by companies, both of which increased, provided support.

The euro countries Italy, the Netherlands, Austria, Estonia, Latvia and Cyprus developed particularly weakly in the second quarter. Economic output was declining there. GDP stagnated in Germany. In contrast, the economy grew particularly significantly in Lithuania, Slovenia and Greece. (dpa)