According to the rapid estimate published by Eurostat, the European economy continued to grow slightly in the second quarter, up 0.3% compared with the previous quarter (as in the previous quarter), and 0.6% year-on-year (compared with 0.5% in the previous quarter).
These figures nevertheless conceal important differences between the different countries that make up the euro area. Germany is in slight contraction compared to the first quarter. Over a year, it has 4 consecutive quarters of contraction. Italy, Belgium and Portugal see their quarterly growth decline. France stabilizes. The Netherlands, on the other hand, experienced a very marked rebound from contraction (-0.3% in the first quarter) to strong expansion (1.0% in the second).
With a good quarterly growth of 0.8% in the first and second quarters, Spain keeps a good dynamic and remains by far the best performing of the major economies in the euro zone.
With the gradual decline in European key rates, our economies should have the necessary room to grow in the coming quarters. Beware, however, after years of exceptional public spending, the public sector will be obliged to clean up its accounts and the aid it grants should go down, which will certainly impact growth, but also inflation.
We expect growth of around 0.8% in 2024. We invest in the euro area through individual shares.
