The 19-member euro zone financial system expanded by 2 per cent in the April-June quarter this year, according to preliminary estimates released last week by Eurostat. The region contracted by 0.3 per cent in the first quarter and 0.6 per cent in the last quarter of 2020. Two consecutive quarters of economic contraction technically lead to a recession.
The financial outlook of the zone, however, remains delicate.The 19-member euro zone financial system expanded by 2 per cent in the April-June quarter this year, according to preliminary estimates released last week by Eurostat. The region contracted by 0.3 per cent in the first quarter and 0.6 per cent in the last quarter of 2020. Two consecutive quarters of economic contraction technically lead to a recession.#
The European Central Bank (ECB) expects gross domestic product (GDP) within the euro zone to hit 4.6 per cent by the end of this year, followed by 4.7 per cent next year.
Portugal, Austria and Latvia registered the highest quarterly growth rates, according to European media reports.
In a separate data release, Eurostat said annual inflation is projected to reach 2.2 per cent in the euro zone in July. This would be up from 1.9 per cent in June.
ECB’s target is to support an inflation rate of 2 per cent. The Frankfurt-based institution has said that inflation is expected to rise in the coming months, but that this will calm down again next year.
Fibre2Fashion News Desk (DS)
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