subject: Why Europe will recover before the United States [print this page] The eurozone economy grew in the second quarter at its fastest pace in four years, boosted by an unexpectedly strong growth in Germany, according to preliminary data released on Friday.
The gross domestic product of the 16 countries sharing the euro expanded 1.0% over the first quarter, the largest quarterly increase since the second quarter of 2006, said Eurostat, the European statistics agency.
GDP, which measures the total value of goods and services in the economy also grew by 1.7% on-year rate in currency trading, the highest rate since the first quarter of 2008.
The figures were much better than expected the market consensus, which envisaged a growth of 0.7% QoQ and 1.4% year on year, according to a Dow Jones Newswires poll of economists. In the first quarter, the eurozone economy grew 0.2% QoQ and 0.6% yoy.
Official figures from the major economies of the region, previously published, had suggested that the eurozone's GDP would exceed expectations.
For its part, Germany's economy grew at its fastest rate since reunification in 1990 thanks to the strong contribution from exports and investment, said Friday the Federal Statistics Office, Destatis.
Destatis said that in the second quarter German GDP grew by 2.2% per quarter in real terms, adjusted for calendar, and 3.7% yoy.
The figure clearly exceeds the consensus forecast of 1.4% growth for quarterly data and 2.6% forecast for the year.
Destatis also revised upward the estimate of first quarter growth of 0.5% per quarter, up three points more than the initial estimate, and 2.0% yoy.
Destatis said that exports and investment were the major contributors to GDP in the second quarter, but added that they also had their influence on state spending and consumer spending.
