European economy grows 2pc, ending double-dip recession

FRANKFURT (AP) — Official figures released yesterday show that the European economy grew two per cent in the second quarter, ending a double-dip recession.

But the growth lagged pre-pandemic levels and trailed the faster recoveries in the United States (US) and China, with the delta variant continuing to cast a shadow of uncertainty over the upturn.

Gross domestic product grew two per cent in the April-June quarter over the quarter before, official figures from the European Union’s (EU) statistics agency Eurostat showed. That compared to a drop of 0.3 per cent in the first quarter as the 19 countries that use the euro endured a double-dip recession.

The growth figure was stronger than the 1.5-per-cent foreseen by market analysts.

Growth returned in major economies France, which grew 0.9 per cent compared to the previous quarter, and Germany, which saw growth of 1.5 per cent after a sharp drop of 2.1 per cent in the first quarter.

Cars and trucks drive on the main highway around Frankfurt. PHOTO: AP