skip to main content

Euro zone growth revised up to 0.4% in second quarter

Second quarter euro zone growth revised upwards today
Second quarter euro zone growth revised upwards today

The euro zone grew by 0.4% in the second quarter, official data showed today, revising upward a first estimate that sparked worries about the health of the European economy. 

Last month, the EU's Eurostat agency said the euro zone grew by just 0.3% in the three months from April to June. 

Eurostat also updated the first quarter growth figure from 0.4% to 0.5%, boosted by high growth in Ireland, which was not included earlier estimates, a Eurostat official said. 

The fresh data comes amid growing concerns for the global economy, hit by a slowdown in powerhouse China that has spooked financial markets. 

The revised data still demonstrates that the euro zone economy suffered a slowdown in the first half of 2015, despite a massive European Central Bank stimulus programme to boost the fragile recovery after the debt crisis. 

Eurostat said all members of the euro zone expanded in the second quarter, except France, the bloc's second biggest economy after Germany, which posted zero growth. 

Export champion Germany grew at the euro zone average of 0.4%. 

Greece managed 0.9% in the period that was deeply marked by a political crisis dividing leftist-led Athens with its euro zone creditors.

Spain saw growth in the period shoot up by 1%, well above the euro zone average, leaving it the best example of post-crisis recovery despite a high rate of unemployment. 

Sluggish Italy saw its first estimate adjusted upward to 0.3% from 0.2%. 

Analysts said that with upward revisions to both the first and second quarters, a 1.5% growth rate for 2015 comes back within reach. They said that today's figures show that the euro zone economy was continuing its modest recovery in the second quarter. The first indications for the third quarter are more of the same, the added.

However the ECB said last week that the recovery in the euro area would continue at a slower pace than previously anticipated because of the turbulence from China.