Eurozone Economy Expands At Faster Pace As Estimated

The euro area economy expanded as initially estimated in the second quarter with better contribution from individual economies.

Gross domestic product grew 0.6 percent quarter-on-quarter, slightly faster than the 0.5 percent increase seen in the first three months of the year, the latest flash estimate from Eurostat showed Wednesday.

The agency thus confirmed its preliminary estimate released on August 1.

Yearly GDP growth was revised up slightly to 2.2 percent from 2.1 percent. The economy had expanded 1.9 percent in the first quarter.

Germany, the largest Eurozone economy, grew 0.6 percent in the second quarter with strong support from domestic demand. The economy had expanded 0.7 percent in the first quarter.

The French economy grew at a steady pace of 0.5 percent driven by domestic spending and exports in the second quarter. At the same time, Spain's growth accelerated to 0.9 percent from 0.8 percent.

Some of the individual countries show the economy is firing on all cylinders right now, Bert Colijn, an ING economist, said.

While some countries remain laggards in the Eurozone, the good news at the moment is that poorer performers are also exceeding expectations, the economist noted.

Italy grew only 0.4 percent sequentially in the second quarter, but the annual growth accelerated to 1.5 percent from 1.2 percent in the first quarter.

Meanwhile, the Netherlands' growth more than doubled to 1.5 percent in the second quarter from 0.6 percent in the previous three months.

Given the incredible Dutch GDP growth and continued strength in Germany, the push for an end to QE in northern economies will become even louder as some key events are coming up, Colijn, ING economist, added.