Euro zone second-quarter growth revised down slightly, employment rises

By Thomson Reuters Aug 17, 2022 | 4:07 AM

BRUSSELS (Reuters) – Euro zone economic growth was slightly less robust in the second quarter than previously estimated but still strong, revised data from the European statistics office showed on Wednesday, and employment rose again.

Eurostat said gross domestic product in the 19 countries using the euro rose 0.6% quarter-on-quarter in April-June for a 3.9% year-on-year rise. The office had previously estimated the quarterly growth at 0.7% and the year-on-year rise at 4.0%.

Eurostat also said that euro zone employment rose 0.3% quarter-on-quarter for a 2.4% year-on-year increase.

Economists believe the second quarter growth might be the economy’s last hurrah before ever-higher inflation and supply chain problems cause a mild recession in the course of the next 12 months.

Looming over all of Europe’s economies is the war in Ukraine. Uncertainty over the course of the conflict has knocked consumer and business confidence while fears remain that a full cut-off of Russian gas supplies would plunge the bloc into a much deeper downturn.

The second quarter growth was mainly a result of a strong performance by Italy and Spain which grew 1.0% and 1.1% quarter-on-quarter respectively and despite stagnation in the bloc’s biggest economy Germany.

(Reporting by Jan Strupczewski)