Eurozone economic growth slows in Q2 as expected

Economic growth in the eurozone slowed in the second quarter, as expected.

According to a preliminary flash estimate by Eurostat, eurozone gross domestic product grew 0.3% in the second quarter compared to 0.6% growth the previous quarter, in line with consensus estimates.

On the year, GDP was up 1.6%, also in line with expectations and compared to 1.7% growth the previous year.

In the EU -28 group of countries, GDP was up 0.4% on the previous quarter and 1.8% on the second quarter of last year.

Dennis de Jong, managing director at UFX.com, said: “After a strong first quarter for eurozone GDP it comes as little surprise that second quarter growth has slowed. The effect of the UK’s Brexit vote hasn’t set in yet, although many will expect numbers to continue to slide.

“We’ve already seen the Bank of Japan underwhelm the markets this morning with just a modest expansion of its stimulus programme, and it will be the Bank of England’s turn to announce its policy decision next week. These are testing times for central banks all over the world and the markets are looking for swift and strong action.”