Europe's growth lags US again, as Germany remains the eurozone's economic problem child
Europe’s economy enjoyed only modest growth in the April-June quarter even as the U.S. outperformed expectations, highlighting a persistent transatlantic growth gap
FRANKFURT, Germany (AP) — Europe’s economy saw modest growth in the April-June quarter even as the U.S. outperformed expectations, highlighting a persistent transatlantic growth gap. Germany, the leading European economy, remained in the dumps while hesitant consumers saved more rather than spending on new houses or cars.
Gross domestic product, the total output of goods and services, rose 0.3% in the second quarter in the 20 countries that use the euro currency, according to official figures released Tuesday by European Union statistics agency Eurostat. Germany slid back into contraction, recording a 0.1% fall in output.
Tuesday's figures follow a similar 0.3% performance from the Jan.-March quarter, the first significant growth after more than a year of stagnation just above, at, or below zero.
By contrast, the U.S. economy grew 0.7% in the second quarter from the first quarter, or 2.8% on an annualized basis. U.S. consumers are spending freely, while support from larger budget deficits and subsidies for business investment, for instance in renewable energy under the Inflation Reduction Act and in semi-conductor production and infrastructure, are also contributing to U.S. growth.
