Euro area GDP growth lower than previously estimated

The euro area economy grew at a slightly lower annual and quarter-on-quarter rate in the second quarter than first estimated, according to data released on Wednesday by Eurostat, the statistical office of the European Union. But these are still not final figures, with the final data due on 7 September.

The euro area’s gross domestic product (GDP) expanded by 0.6 percent in the three months to the end of June, down from 0.7 percent in the first estimate at the end of July. GDP expanded by 0.5% in the first quarter.

In the European Union, GDP grew by 0.6 percent on a quarterly basis in the second quarter, the same rate as in the first estimate and the same rate as in the first quarter.

Euro area GDP was 3.9 percent higher than a year earlier and EU GDP 4.0 percent higher in the second quarter. In the first estimate at the end of July, GDP growth in both the euro area and the EU for the second quarter was 4 percent. Annual growth in the first quarter was 5.4 percent in the euro area and 5.5 percent in the EU.

There are some signs of an impending recession, with German economic growth at zero in the quarter and some countries such as Poland (-2.3 percent), Latvia (-1.4 percent), Lithuania (-0.4 percent) and Portugal (-0.2 percent) contracting.