Euro Area GDP Growth Rate Confirmed at 0.3%

The Euro Area GDP expanded 0.3% on quarter in Q2 2024, the same as in the previous period and in line with the preliminary estimate.

Key economies including France (0.3% vs 0.3% in Q1), Italy (0.2% vs 0.3%) and Spain (0.8% vs 0.8%) grew in the quarter.

Belgium (0.2% vs 0.3%), Ireland (1.2% vs 0.7%), Portugal (0.1% vs 0.8%), Lithuania (0.9% vs 0.9%), Cyprus (0.7% vs 1%), Slovakia (0.4% vs 0.6%) and Finland (0.4% vs 0.2%) also expanded.

At the same time, the GDP in Estonia (0.2% vs -0.4%), Netherlands (1% vs -0.3%) and Slovenia (0.2% vs -0.1%) rebounded.

On the other hand, Germany which is the largest economy, unexpectedly contracted 0.1%, as the industrial sector continues to be strained by high interest rates.

Also, Latvia shrank 1.1% and the GDP in Austria stalled (vs 0.2%).

Year-on-year, the GDP in the Euro Area expanded 0.6%, the most in five quarters.

The European Commission expects the Eurozone economy to grow 0.8% this year, following a broad stagnation in 2023.