Eurozone economy is growing again

According to Eurostat, the eurozone's GDP increased by 0.3% in the second quarter compared to the previous three-month period, indicating a recovery in economic activity. The previous two quarters were marked by a 0.1% contraction in the euro area economy in the first quarter and a 0.1% growth in the fourth quarter of 2022.

Important factors contributing to the recovery were economic activity in countries such as Ireland (3.3% GDP growth in the second quarter), as well as France and Spain.

However, there are some factors hindering further growth in the eurozone economy, such as a slowdown in industrial production in Germany and an economic downturn in Italy.

The report also points to an increase in inflation in the euro area, which was 5.3% year-on-year in the second quarter, in particular, core inflation (excluding fuel and food prices) was 5.5%, the highest since 2021.

Despite the recovery, there are certain risks associated with the changing economic environment and government actions. Rising inflation could affect consumer prices and the cost of living for citizens. In addition, given the unstable global situation, possible changes in foreign economic relations may affect the further development of the eurozone economy.

Currently, the region is actively exploring opportunities to stabilize and strengthen the economic situation and ensure sustainable GDP growth. It is also important for Ukraine to monitor trends in the eurozone economy, as this may affect economic interactions between countries and the foreign economic situation in the region.