Zero economic growth for eurozone in second quarter

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Zero economic growth for eurozone in second quarter

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There is confirmation that the eurozone’s recovery stalled in the second quarter of the year

The latest EU stats are in line with an earlier estimate that gross domestic product was flat compared to the previous three months.

The reasons were declining investment and a fall in inventories, coming against a backdrop of heightened geopolitical tension – particularly the Ukraine crisis.

There were positive growth contributions from trade, with both exports and imports up, and household consumption also increased.

Investment has been weakening since the end of 2013 and EU policy-makers believe growth will only return when it revives.

Two of the region’s largest economies – Germany and Italy – were among the worst performers. GDP in both fell by 0.2 percent between April and June.

The figures explain the European Central Bank’s aggressive policy moves.

with Reuters