Eurozone Economy Expands 1% in Q2, Services Sector Drives Growth
The Eurozone economy has posted modest growth in Q2 of this year, with GDP expanding by 1% compared to the same period last year. This slight acceleration from the previous quarter's 0.9% growth marks a steady recovery for the region. The services sector was a key driver behind this expansion, while manufacturing continued to struggle.
Among the largest Eurozone economies, Spain and France showed stronger-than-average growth, but Germany's economy stagnated. This divergence in performance highlights the challenges facing the bloc, particularly in export-oriented industries that are grappling with weak global demand and high energy costs.
The data comes at a critical time for the European Central Bank (ECB), which is balancing inflation control against growth concerns. While moderate growth gives the ECB room to keep interest rates higher for longer, a prolonged manufacturing slump could prompt a policy shift later in the year.