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Euro zone growth slower than expected in second quarter

The quarter-on-quarter and year-on-year growth figures were both 0.1 percentage point below expectations
The quarter-on-quarter and year-on-year growth figures were both 0.1 percentage point below expectations

The euro zone economy grew by less than expected in the second quarter, the European Union's statistics office has said in its first estimate of the period.

Eurostat said gross domestic product in the 19-country euro area grew by 0.3% quarter-on-quarter in the April-June period for a 1.2% year-on-year rise.

Economists polled by Reuters had expected a 0.4% quarterly expansion and a 1.3% annual gain.

The first reading of second-quarter GDP in the euro zone comes two days after data showed that industrial output shrank by more than expected in June.

The wider European Union fared slightly better, however, with quarterly growth of 0.4% and year-on-year growth of 1.6%.

Second quarter figures from a number of countries - including Ireland - were not included in the Eurostat statistics as they were unavailable at the time of release.

Of those included, Latvia enjoyed the strongest quarterly growth at 1.2%, while the Czech Republic had the best year-on-year improvement at 4.4%.

Earlier, the German economy, the currency bloc's largest, was shown to have grown by 0.4% quarter-on-quarter, an improvement from the first quarter but still below expectations.

Data from neighbouring France also missed expectations, as GDP growth there stalled in second quarter.