Euro area economy grows 2.3% in Q2, as growth slows down in UK

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By Stelios Orphanides

The euro area’s economy expanded in the second quarter an annual 2.3 per cent and 0.6 per cent compared to January to March, the European Commission’s statistical office said.

The economy in the European Union grew in April to July 2.4 per cent compared to the respective quarter of 2016 and 0.7 per cent compared to the quarter before, Eurostat said in a statement on its website on Thursday.

The Cypriot economy, the euro area’s second smallest, expanded in the second quarter an annual 3.5 per cent and a quarterly 0.9 per cent, Eurostat said. Germany, the euro area’s largest economy grew in April to June an annual 2.1 per cent and a quarterly 0.6 per cent while that of France, the euro area’s second largest, 1.7 per cent and 0.5 per cent and the Italian, the third largest, 1.5 per cent and 0.4 per cent respectively.

The UK’s economy, which is facing uncertainty following the outcome of the Brexit referendum in June last year, expanded in the second quarter an annual 1.7 per cent, beating only Greece’s 0.8 per cent, and a quarterly 0.3 per cent, the lowest in the EU together with Portugal.

The fastest growing economy in the second quarter was that of Romania with an annual 5.7 per cent growth rate and the Czech Republic with a quarterly growth rate of 2.5 per cent, Eurostat said.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Kevin Ingham

    Hard to say what us mere observers can make of it all

    The EU has pumped in trillions of Euros into the system to try and kick start zombie economies back into gear- any normal and competitive economy with unemployment rates of over 10% should be booming at abnormally high rates in such circumstances.

    However the dysfunctional currency that is the Euro reacts to any positive growth signs by appreciating in value, automatically reducing the competitiveness of the Euro countries that need the growth the most

    According to the above report the fastest growing EU economies are those outwith the Euro

    Oddly enough what the UK currently needs is slower growth and less immigration – that is the only way the younger generation can hope to get on the property ladder, and if Brexit is the cause of that happening then great , it could be he start of a long needed correction process (that cannot happen with open borders and freedom of movement)

    Economists are obsessed with “growth”, but the UK currently has virtually full employment- what the UK needs to do is start balancing it’s budget and if that means slower growth in the short term for long term stability then that is what the country should be aiming for