Eurozone: Second estimate confirms robust Q2 expansion
August 16, 2017
A second flash estimate reaffirmed solid growth momentum in the Eurozone’s economy in the second quarter of 2017, as the region remains a bright spot in the global economy this year. The Eurozone economy increased a seasonally-adjusted 0.6% in Q2 from the previous quarter, which was above Q1’s 0.5% increase. The reading matched the first preliminary estimate published on 1 August. Compared with the same quarter of 2016, seasonally-adjusted GDP expanded 2.2% in Q2, which was above the 1.9% increase seen in Q1.
Although the preliminary GDP data did not include a breakdown by components, the Eurozone’s growth story is expected to have remained largely unchanged. Domestic demand is in the driver’s seat as an improving labor market, high confidence levels and expansionary monetary policy support economic activity. In addition, exports are likely to have expanded in Q2, aided by a firm global backdrop and despite political uncertainties and a strong euro.
Moreover, additional data released by statistical offices across the continent showed that momentum is gaining speed throughout the region. Italy’s economy exceeded expectations in Q2 and activity in Spain picked-up pace. Although growth in Germany edged down in Q2, the deceleration was primarily due to rising imports and the economy still expanded at a fast clip. More complete GDP data including a breakdown by components will be released on 7 September.