Stronger economy than expected in the eurozone

The economy in the euro area grew more than expected during the second quarter. France and Spain are the locomotives – while the disappointment Germany weighs.

» Updated: July 31 2024

» Published: July 30 2024

Stronger economy than expected in the eurozone
Photo: Michael Sohn/AP/TT

The eurozone's gross national product (GNP) increased by 0.3 per cent during April, May, and June, according to new statistics from Eurostat.

The analysts had expected an increase of 0.2 per cent, as shown by Bloomberg's compilation of forecasts.

The figure means that growth in the euro countries is maintaining the same pace in the second quarter as in the first.

However, among Europe's heavyweights, the development looks different.

France's GNP increased by 0.3 per cent during the second quarter – slightly more than the expected 0.2 per cent. Spain's GNP rose by 0.8 per cent, compared to the expected 0.5.

The GNP figures show that both countries have resilience. In a challenging situation with high interest rates, energy crisis, and faltering exports, they have managed relatively well.

In the EU's largest economy, Germany, growth is slowing down instead. German GNP decreased by 0.1 per cent. This was below expectations – an increase of 0.1 per cent – and can be compared to an increase of 0.2 per cent in the previous quarter.

A German turnaround also appears to be delayed.

"Germany's economy is stuck in crisis," says Klaus Wohlrabe at the Munich-based research institute Ifo in a statement.

"The third quarter offers no hope of improvement."

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By TTThis article has been altered and translated by Sweden Herald

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