THE GDP in the 19-nation eurozone increased two per cent in the second quarter, beating economists' estimated, reported Bloomberg.
But the European Central Bank (ECB) warned that the region has a 'long way to go' before the damage caused by the Covid crisis is repaired.
ECB president Christine Lagarde has argued that 'significant slack' in the economy is weighing down wages, a trend that keeps inflation pressures contained.
The ECB predicts the Eurozone will take until early next year to recover its Covid losses.
Biggest gains were seen in Italy and Spain and growth in France came ahead of expectations. The biggest surprise was Germany's lackluster 1.5 per cent gain.
Italian GDP rose 17.3 per cent in the second quarter compared to a year ago, and 2.7 per cent from the previous quarter.
Growth is Italy's best hope of managing its massive debt, which grew to nearly 160 per cent of GDP as the government spent heavily to manage the fallout from Covid. Hopes are pinned on EUR260 billion in EU and Italian recovery plans cash will kick start the domestic economy.
Spanish growth was driven by a robust rebound in household consumption and a recovery in the services sector.
French statistics agency Inslee upwardly revised first-quarter GDP figures to show a stagnation rather than contraction previously reported. That revision means the country narrowly avoided a recession after a slump in the final months of 2020.
The economy has been in recovery since the second quarter as the country rebounds from the Eurozone's deepest contraction in 2020. GDP contracted nearly 11 per cent last year in part because of the country's reliance on the battered tourism industry.
A separate report showed inflation in the Eurozone climbing to 2.2 per cent in July, again exceeding estimates.
SeaNews Turkey
But the European Central Bank (ECB) warned that the region has a 'long way to go' before the damage caused by the Covid crisis is repaired.
ECB president Christine Lagarde has argued that 'significant slack' in the economy is weighing down wages, a trend that keeps inflation pressures contained.
The ECB predicts the Eurozone will take until early next year to recover its Covid losses.
Biggest gains were seen in Italy and Spain and growth in France came ahead of expectations. The biggest surprise was Germany's lackluster 1.5 per cent gain.
Italian GDP rose 17.3 per cent in the second quarter compared to a year ago, and 2.7 per cent from the previous quarter.
Growth is Italy's best hope of managing its massive debt, which grew to nearly 160 per cent of GDP as the government spent heavily to manage the fallout from Covid. Hopes are pinned on EUR260 billion in EU and Italian recovery plans cash will kick start the domestic economy.
Spanish growth was driven by a robust rebound in household consumption and a recovery in the services sector.
French statistics agency Inslee upwardly revised first-quarter GDP figures to show a stagnation rather than contraction previously reported. That revision means the country narrowly avoided a recession after a slump in the final months of 2020.
The economy has been in recovery since the second quarter as the country rebounds from the Eurozone's deepest contraction in 2020. GDP contracted nearly 11 per cent last year in part because of the country's reliance on the battered tourism industry.
A separate report showed inflation in the Eurozone climbing to 2.2 per cent in July, again exceeding estimates.
SeaNews Turkey