What crisis? Eurozone growth revised up to 0.4 per cent in second quarter

 
Emma Haslett
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Growth in the region was revised up - but only slightly (Source: Getty)

Things didn't get quite as bad during the Greek crisis as everyone thought, it turns out, after Eurozone growth for the second quarter was revised upwards.

Official statistics published this morning showed the bloc grew 0.4 per cent between April and June, up from the 0.3 per cent originally thought. At the time of the original estimate, economists expected growth of 0.4 per cent.

Of course, that's likely to be partly thanks to the €60bn-a-month quantitative easing programme introduced by the European Central Bank in March.

But continued weakness on the other side of the world suggests things may take a while to pick up.

Data published last night suggested Chinese imports fell 14.3 per cent in August, while exports fell 6.1 per cent. Last month, weak manufacturing figures from China sent markets into a spin on fears of a global slowdown.

"Eurozone GDP growth was held back in the second quarter by stagnation in France," said Howard Archer, chief European economist at IHS.
"While this followed 0.7 per cent quarter-on-quarter growth in the first quarter, it nevertheless fuelled concerns over France's ability to generate and sustain decent expansion amid ongoing competitiveness problems.
"There was also sharply lower growth in the Netherlands (down to 0.1 per cent quarter-on-quarter from 0.6 per cent)."

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