AFP/Yonhap News
The eurozone economy, comprising the 21 countries that use the euro, posted a surprise expansion in the second quarter this year despite the shock of the Middle East war.
According to Eurostat, the statistical office of the European Union (EU), gross domestic product (GDP) across the 21 euro-using countries grew 0.4% from the previous quarter. That was higher than the market forecast of 0.2%. Compared with the same period a year earlier, the growth rate came in at 1.0%, far exceeding the market estimate of 0.5%.
The eurozone, which had managed only 0% growth in the first quarter, delivered above-forecast growth in the second quarter as increased investment in artificial intelligence (AI) and higher government spending offset the high energy costs caused by the war in Iran, Reuters analyzed.
By country, Ireland’s GDP surged 3.9% from the previous quarter, lifting the eurozone’s overall economic growth rate. Lithuania (1.7%) and Sweden (1.4%) also posted relatively high growth rates.
The GDP of the eurozone’s “Big 3” — Germany, France and Italy — each grew 0.2%. Germany’s GDP growth rate slowed from 0.4% in the previous quarter, but it was higher than the market forecast of 0.1%.
Spain also continued its solid expansion with a growth rate of 0.7%, exceeding market estimates. The performance was attributed to strong consumer spending, the successful integration of immigrants into the labor market, a recovery in the tourism industry and large-scale inflows of EU funds. Austria and Belgium showed stagnant economies with growth rates of 0%.