The eurozone economy grew by a strong two per cent in the second quarter, according to official data released on Friday, as reopened businesses lifted activity out of the worst of the pandemic doldrums.
The expansion in Europe was stronger than in the United States, where the economy grew by 1.6 per cent compared to the previous quarter, and China, which saw a 1.3 per cent expansion in the period.
Some of the biggest rates of growth were seen in Italy and Spain, the countries worst hit by the first wave of the crisis in 2020.
But the 19 countries that use the euro are still trying to catch up ground lost during the COVID-19 pandemic in which its economy suffered the most in the developed world.
But the 19 countries that use the euro are still trying to catch up ground lost during the COVID-19 pandemic in which its economy suffered the most in the developed world
All eyes are now on whether the momentum can hold, with the Delta variant of the virus seeing countries consider new orders to limit activity that could put a brake on the economy’s growth dynamic.
Eurostat, the EU’s official data agency, also said that inflation rose to 2.2 per cent, above the European Central Bank’s target of near, but below, two per cent. Higher consumer prices, brought on by energy costs and clogged supply chains, are becoming a political hot potato.
Influential voices from Germany, the EU’s biggest economy, are calling for the ECB to cool the economy by tapering down its historic levels of stimulus.
In a big release of data before the summer break, the agency said unemployment in June fell to 7.7 per cent in the 19-country eurozone, 0.3 percentage points lower than a month earlier.
The unemployment rate for the EU as a whole followed a similar trend, declining by 0.2 percentage points over a month to 7.1 per cent.