Friday 12 August 2016 10:08 am

Eurozone growth rate halves in second quarter as GDP expands by 0.3 per cent

The Eurozone grew by 0.3 per cent in the second quarter of the year, as a slowdown in both France and Germany weighed on economic performance.

The single currency bloc had surprised analysts with a bumper 0.6 per cent expansion in the first three months of the year, but zero growth in France and only a 0.4 per cent expansion in Germany meant the strong uptick could not be sustained.

Eurostat, Europe's official statistics body, said the Eurozone economy was now 1.6 per cent larger than it was this time last year.

European stock markets edged off seven-week highs on the news, with the German Dax down 0.3 per cent and the Eurostoxx 600 holding flat.

Top of class

Country Growth rate
Slovakia 0.9 per cent
Spain 0.7 per cent
Cyprus 0.7 per cent
Netherlands 0.6 per cent

Spain was the fastest growing of the Eurozone's big four economies, expanding by 0.7 per cent as its belated recovery gathers pace. Italy joined France by only managing to flat-line during the second quarter, as it struggles to insulate the wider economy from a banking crisis.

Austria also recorded no growth, while Greece surprised by avoiding a recession with a 0.3 per cent expansion.

Room for growth

Country Growth rate
France Zero
Italy Zero
Austria Zero
Lithuania 0.1 per cent

Despite growth halving, the single currency bloc is expanding at a much faster rate than in the years after the downturn, when it suffered a second recession during the debt crisis of 2011-2012.