Eurozone: Eurozone GDP contracts in Q2
August 14, 2012
In the second quarter, Eurozone GDP dropped 0.2% over the previous period, according to the flash estimate released by the statistical office (Eurostat) on 14 August. The reading was below the flat reading recorded in the first quarter and was in line with market expectations. On an annual basis, the economy contracted 0.4%, marking a deterioration compared to the flat reading recorded in the previous quarter. Among the major countries in the region, Germany, which accounts for nearly 30% of the Eurozone's output, was the only one to experience positive growth (+0.3% quarter-on-quarter), which marked nonetheless a moderation from the 0.5% expansion recorded in the previous quarter. In France, Q2 GDP was unchanged compared to the previous quarter, which mirrored the result seen in Q1. Italy experienced the largest contraction (-0.7% qoq), which marks a fourth consecutive quarter of declining output. Finally, Spain posted a 0.4% drop, which represented a slight deterioration compared to the 0.3% contraction experienced in the previous quarter.
Author: Armando Ciccarelli, Head of Data Solutions