Euro zone economic growth accelerates in second quarter

Euro zone economic growth accelerates in second quarter

BRUSSELS Reuters - Euro zone economic growth accelerated quarter-on-quarter in the second quarter, according to preliminary data released on Friday, defying expectations of a slowdown, thanks to a much stronger than forecast performance in Spain, France and Italy.

The preliminary estimate of Eurostat may be revised later, but it shows the resilience of the economy of the 19 countries sharing the euro amid record inflation, especially energy costs for industry, and uncertainty created by the Russian invasion of Ukraine.

The European Union's statistics office Eurostat shows that the euro zone's gross domestic product is up 0.7% quarter-on-quarter and 4.0% year-on-year.

Economists polled by Reuters had predicted a 0.2% quarterly rise and a 3.4% year-on-year gain, after a 0.5% quarterly increase and a 5.4% annual rise in the first three months.

Despite a slightly weaker than expected outcome in the euro zone's biggest economy, France beat expectations with a 0.5% quarterly growth, Italy with a much stronger 1.0% growth and Spain with an equally surprising 1.1% increase.