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Euro zone economy grows 2.1% in second quarter

Published 08/01/2017, 05:06 AM
© Reuters.  Euro zone economy grows 2.1% in second quarter

Investing.com - The euro zone economy grew at a faster pace in the second quarter than the first according to preliminary data released on Tuesday.

The European Union's statistics office Eurostat said gross domestic product in the euro area rose 0.6% quarter-on-quarter in the three months to July from a downwardly revised 0.5% in the first quarter and by 2.1% year-on-year, up from 1.9% in the first quarter.

Economists had forecast growth of 0.6% in the quarter and 2.4% year-on-year.

The solid data did little to alter expectations that the European Central Bank will decide to begin scaling back its asset purchase program in the autumn.

The data came a day after figures showing that headline inflation in the euro zone rose in line with forecasts in July, but underlying inflation rose to the highest in four years.

The annual rate of inflation rose by 1.3% in July, according to a preliminary reading from Eurostat.

Core inflation, which strips out volatile components and is seen as a more reliable gauge of inflationary pressures, rose to 1.2%. It was the highest reading since August 2013.

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