Eurozone: Strong Q2 GDP led by Germany and Spain - ING

FXStreet (Delhi): Teunis Brosens, Research Analyst at ING, notes that the Eurozone has managed to post strong Q2 GDP numbers with Germany and Spain being the major growth engines of the region.

Key Quotes

“Eurozone Q2 GDP growth was adjusted upward to 0.4%QoQ in Eurostat's 2nd estimate, up from 0.3% in the preliminary estimate – although rounding helped a hand here, as growth turned out at 0.36%QoQ. But The first quarter was revised up too, from 0.4% to a genuine 0.52%.”

“Looking at individual countries, the Q2 recovery was made in Germany, but just as well in Spain. Eurostat’s detailed GDP estimate shows that both countries contributed about 0.1%-point to the region’s GDP growth. Italy came in third, contributing 0.05%-point.”

“In sum, today’s figures show that the Eurozone economy was continuing its modest recovery in the second quarter. The first indications for the third quarter are more of the same. Employment is increasing. July retail sales were decent, showing that consumers continued to spend despite Greek and Chinese turmoil.”
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