The eurozone economy grew faster than expected in the second quarter, official data showed, confirming the single currency's recovery since January, AFP reported.
The 20 eurozone countries grew by 0.3% in the April-June period, exceeding the 0.2% expected, the European Central Bank (ECB) said.
This comes after the eurozone also grew by 0.3% in the first quarter of this year, breaking away from stagnation in the second half of 2023.
The data is likely to support the European Central Bank's view that there is no need to rush to lower interest rates further so soon after the June cut.
The euro area saw zero growth in the final six months of last year. Better-than-expected growth will please many, but concerns remain for Germany, Europe's largest economy.
In the second quarter, German output contracted by 0.1%.
"Overall, today's data confirm once again that Germany is a laggard in the euro area," said Carsten Brzeski of ING Bank.
"A recovery is still possible in the second half of the year, although it is unlikely to be strong," the expert added.
Still, there are warning signs for the European economy after data last week showed that business activity in the eurozone slowed further in July. The manufacturing sector has seen persistent weakness.
In contrast, Germany, France and Spain, the eurozone's second and fourth largest economies, beat forecasts and grew in the second quarter by 0.3% and 0.8% respectively.
France is currently hosting the Olympic Games in Paris, which Capital Economics says should give the eurozone economy a "small boost" in the third quarter of 2024.
Growth in Spain, one of the region's strongest performers, has been driven by exports and high household spending. In France, output rose thanks to foreign trade and a recovery in corporate investment.
Southern Europe seems to be doing better than its counterparts in other parts of the continent.
Italy and Portugal posted increases of 0.2% and 0.1% respectively.
The data also showed that the economy of the 27 European Union countries expanded by 0.3% in the second quarter.
All eyes will be on the eurozone inflation data for July, which will be published on 31 August. Consumer prices remain above the ECB's 2% target. | BGNES
