Eurozone Growth Slows, France And Italy Falter

Mohammad Ali (@ChaudhryMAli88) Published August 12, 2016 | 03:21 PM

BRUSSELS, (APP - UrduPoint / Pakistan Point News - 12th Augst,2016) - Eurozone second quarter growth slowed sharply, official data confirmed Friday, weighed down by Brexit concerns and a poor performance in struggling France and Italy. Growth in the 19-nation eurozone came in at 0.3 percent, down from 0.6 percent in the three months to January but unchanged from the initial estimate given last month, the Eurostat statistics agency said. The 0.3 percent quarterly gain was in line with average forecasts compiled by data company Factset. Analysts said at the time of the initial release that uncertainty in the run-up to Britain's shock June 23 vote to quit the European Union had likely dampened activity after a very strong first quarter.

Compared with a year earlier, the eurozone expanded 1.6 percent in the three months to June, also unchanged from the initial estimate. Germany, Europe's biggest economy did better than expected with a gain of 0.4 percent in the second quarter, down from 0.7 percent in the first. German officials said the relatively strong performance reflected a pick-up in exports while private and public sector consumption also increased. Analysts were mixed on the outlook. Holger Schmieding, at Berenberg bank, said Germany was in a strong position to weather the Brexit fallout on the back of "solid domestic fundamentals, a buoyant labour market, rising real incomes, a modest fiscal stimulus and excellent financing conditions."