Eurozone economy grows more than initially estimated in Q2

The eurozone economy grew more than initially estimated in the second quarter, according to data released on Wednesday by Eurostat.

GDP grew 0.8%, up from 0.7% in the first quarter and ahead of the initial estimate of 0.6% growth.

Compared with the same quarter of the previous year, GDP rose 4.1%, from 5.4% in Q2 last year. This was also above the initial estimate of 3.9% growth.

The expansion in the second quarter was led by domestic demand, as consumer spending was boosted as health restrictions were lifted.

Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "Looking ahead, we think these numbers will look very different in the second half of the year, as the EZ economy falls into a technical recession.

"Soaring inflation, and uncertainty related to rising energy prices, will weigh on consumers’ spending, via a hit to real income growth, and we also think gross investment will soften as inventories fall."

Figures from Eurostat also showed that employment in the bloc rose 0.4% in the second quarter compared with the first, when it increased by 0.7%.