Eurozone Economy Expanded by 0.4% in Q2

Forex News

The Eurozone gross domestic product (GDP) increased in the second quarter. The Eurostat reported, that the Eurozone economy increased by 0.4% quarter-on-quarter in Q2, as expected. On annual basis, the Eurozone GDP grew by 2.1%, lower than a 2.2% growth forecast.

Gross fixed capital formation rose by 1.2% during the second quarter, contributing 0.3% to GDP growth. Changes in inventories, household spending and government expenditure each contributed 0.1%. Exports rose by 0.6% and imports surged by 1.1% during the quarter, meaning the net impact of foreign trade on GDP was 0.2%. Net trade was also negative in the first quarter of 2018, but positive in the final two quarters of 2017.

Among Eurozone countries, the strongest growth was in Malta (1.9%), Estonia (1.4%) and Slovakia (1.1%). The weakest growth rates were observed in France, Greece and Italy, all at 0.2%. Meanwhile, the German economy expanded by 0.5% during the second quarter.