Business

Eurozone economy grows by 0.3%

French workers on a building site Image copyright Getty Images

The economies of the 19 countries that use the euro grew by about 0.3% between April and June, according to official figures.

The first estimate from Eurostat marks a slight slowdown from the 0.4% registered in the first quarter.

The statistics agency also announced that inflation in the eurozone was 0.2% in July, unchanged from June's figure.

Earlier, it was announced that France's economy did not grow at all between April and June.

But growth in the first three months of the year was revised up from 0.6% to 0.7%, the statistics office Insee said.

The German economy grew 0.4%, up from 0.3% in the first quarter. Italy's economy grew 0.2%, slowing from 0.3% the previous quarter.

In the wider 28-member EU, GDP grew 0.4%, which was unchanged from the previous quarter, while inflation was 0.1% in July, unchanged from June.

Eleven member states reported deflation in the month, with Cyprus recording the biggest drop at -2.4%. Malta reported the most inflation at 1.2%.

Strong exports

French finance minister Michel Sapin said his country's economy was still on track to reach the government's forecast of 1% growth for the year.

He highlighted strong exports, which grew 1.7% in the quarter, having grown 1.3% in the previous quarter.

Growth in consumption by households slowed sharply from 0.9% to 0.1%, while production of goods and services contracted slightly.

Exports also grew strongly in Germany, helped by the weaker euro.

Finland's economy recorded a second quarter of contraction, down 0.4% having recorded negative growth of 0.1% in the first quarter.

On Thursday, preliminary figures from Greece suggested its economy grew a considerably better-than-expected 0.8% in the second quarter, while the first quarter's figure was revised from a 0.2% contraction to zero growth.

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