The Eurozone economy expanded by 0.6% in the second quarter compared with the previous three months on a seasonally adjusted basis, according to a new estimate released by Eurostat on Monday.
Compared with the same period a year earlier, gross domestic product in the 21-member currency area increased by 1.2%, data from the European Union’s statistics agency showed.
The figures come as the Eurozone economy faces higher energy prices linked to the Iran conflict, while investment in artificial intelligence has provided support to economic activity. Forecasters cited by Reuters have warned that growth this year could remain below the region’s already reduced potential.
In the first quarter, the Eurozone economy had recorded annualised growth of 0.6%.
Ireland records largest quarterly increase
Among individual member states, Ireland recorded the largest quarter-on-quarter expansion, with its economy growing by 10.2%.
Austria was the only member state to report a contraction, with gross domestic product declining by 0.1% from the previous quarter.
ECB interest-rate decision due this week
The data were released ahead of the European Central Bank’s latest monetary policy decision later this week.
Policymakers are widely expected to increase borrowing costs as the central bank assesses inflationary pressures associated with higher energy prices.
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