The euro area’s economy experienced moderate growth in the second quarter of this year, according to data from the European Union’s statistics agency Eurostat. This growth comes after two consecutive quarters of economic stagnation.
From April to June, the bloc’s gross domestic product expanded by 0.3%, compared to the flatlining growth seen in the first quarter of 2023. On a year-on-year basis, the region’s economy grew by 0.6%.
These figures align with both preliminary estimates published in July and forecasts from economists surveyed by The Wall Street Journal.
This modest recovery follows a lackluster performance in the winter half-year, originally reported as a recession before being revised to show no growth. Economists anticipate continued but slow growth for the rest of the year due to tight financing conditions and concerns about the global economy. FactSet poll respondents expect the euro area’s real GDP to grow by 0.6% in 2023.
However, there are some more optimistic projections from certain institutions. The European Central Bank predicts a 0.9% expansion for the eurozone economy in 2023. Meanwhile, according to forecasts released in May, the European Commission expects growth in the bloc to reach 1.1% this year.
Among member nations, Germany experienced stalled economic growth in the second quarter, while France saw a 0.5% expansion and Spain’s GDP grew by 0.4%. Conversely, Italy’s economy contracted by 0.3%.
This positive outlook for the eurozone’s economy is encouraging; however, uncertainties remain as global economic conditions continue to impact growth.