The Portuguese economy is the second fastest growing of the 20 eurozone countries, growing 2.3% in the second quarter compared to the same period last year. As for the single currency, it stalled at 0.6%, well below the United States of America’s (US) 2.6% gain, according to data released by Eurostat this Wednesday.
Tied with Portugal seems Cyprus, whose GDP also increased by 2.3% between April and June compared to the same period last year. Ireland leads the most thriving economies in the eurozone, with a 2.8% increase in the second quarter, according to the statistics office.
From a global perspective and looking at the performance of the single currency area, the signs are worrying. The Eurozone slowed and grew by only 0.6%, having advanced by 1.1% year-on-year in the first quarter. The recession of the largest economy in the Eurobloc contributed to this sharp slowdown: Germany’s GDP contracted by 0.1%. France, the second strongest country, gained just 0.9%.
Compared to the 27 countries of the European Union (EU), average GDP growth also cooled significantly to 0.5% in the second quarter compared to the same period last year, compared to a much larger increase of 1.1% in the previous quarter.
The growth slowdown in the EU and the eurozone is comparable to the 2.6% increase in the US between April and June, according to Eurostat data.
In terms of the labor market, the employment rate fell in the second quarter to 1.5% and 1.3% respectively in the euro area and in the EU, year on year, representing a growth of 1.6% in both geographies. For the period between April and June, the European Statistical Office still does not present any information on Portugal.
Source: DN
