Eurostat said on Thursday Eurozone GDP rose 1.0% YoY and 0.4% QoQ in Q2, both
above market forecasts. While most forecasters still expect full-year growth
below 1% after a year hit by soaring energy costs, the report shows pockets of
strength: corporate investment in AI is accelerating, household consumption
remains resilient and the long-slumping industrial sector displayed unexpected
resilience to high energy costs and likely contributed to growth. Capital
Economics economist Andrew Kenningham said the bloc should better withstand
energy shocks from tensions with Iran and expects quarterly GDP growth of about
0.25% over the next year, adding that if energy prices stay elevated downside
risks would remain but could be smaller than widely expected.
