Inflation in the Eurozone continues to recede

As reported by the European statistical office Eurostat according to an initial estimate, the GDP in the Eurozone increased in the second quarter by 0.3 per cent compared with the previous quarter. Price increases in the Eurozone are tailing off and the economy is slowly growing, according to this.

In the first quarter, the GDP had stagnated, after having even shrunk by 0.1 per cent in the final quarter of 2022. Economists expected growth of 0.2 per cent on average. The Eurozone thus narrowly avoided a technical recession, i.e. two negative quarters in a row. However, the economy was slow to develop over the winter.

France and Spain in particular contributed to growth with increases of 0.5 and 0.4 per cent respectively. The Irish economy displayed especially strong expansion at 3.3 per cent, although its growth is regularly overstated due to special effects.

In the meantime, inflation in the Eurozone continues to recede. In July, consumer prices increased by 5.3 per cent compared with the previous year, after a 5.5 per cent increase in the preceding month. This is the lowest inflation rate since the beginning of 2022.