The recovery in the Euro-area unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine. Gross domestic product (GDP) in the three months through June was unchanged from the first quarter, when it increased 0.2%, the European Union’s statistics office Eurostat said.
Economists called for growth of 0.1%. Germany’s economy shrank 0.2% in Q2, its first contraction since 2012, while France unexpectedly stagnated. Italy succumbed to its third recession since 2008, with GDP falling 0.2% in the April-June period. At the same time, the Spanish economy expanded at the fastest pace since 2007, and the Netherlands and Portugal returned to growth. GDP also increased in Belgium, Estonia, Latvia, Lithuania, Austria, Slovakia and Finland. Year-on-year, the Eurozone GDP expanded 0.7%.
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