Eurozone economy grows 2.2% in Q2, surpasses estimates

Economic growth was strongest in Netherlands, Latvia, Spanish economy grew above average

Reuters  |  Brussels 

Eurozone economy grows 2.2% in Q2, surpasses estimates

The in the 19 countries sharing the currency expanded by more than previously forecast in the second quarter compared to the same quarter in 2016, the European Union's statistics office Eurostat said on Wednesday.

zone gross domestic product (GDP) expanded by 0.6 per cent in the second quarter compared to the first, as previously estimated, but the annual figure was upgraded to 2.2 per cent growth, compared to 2.1 per cent previously.

The flash estimate for annual was also higher than the 2.1 per cent expected in a Reuters poll of 28 economists.

Compared to the previous quarter, economic was strongest in the and Latvia, with the Spanish also growing above average.

While the German economy, the zone's largest, expanded at the same pace as the zone average in the second quarter, France, and lagged slightly behind.

Evidence of robust economic expansion will be weighed by policymakers who will soon begin to debate recalibrating after years of extraordinary stimulus.

"With the maintaining a healthy pace of growth, the ECB should feel fairly confident about tapering its asset purchases next year," economists at Capital Economics said.

The recovery in the bloc is gathering steam, with recent figures showing their lowest reading since 2009 and economic sentiment rising to a 10-year high in July.

figures for June released earlier this week, however, showed a larger than expected drop.

and confidence date due to be released at the end of August should paint a clearer picture as to where the zone's is heading in the third quarter.