The Eurozone quarterly economic growth was revised lower to 0.6 percent in the second quarter of 2022 from a preliminary estimate of 0.7 percent, and following a 0.5 percent rise in Q1. It is still the strongest performance in three quarters, prompted by the easing of covid restrictions and the summer tourism season in southern countries. Spain (1.1%), Italy (1%) and France (0.5%) grew at a strong and upbeat pace while the German economy stalled and some countries including Portugal (-0.2%), Lithuania (-0.4%) and Latvia (-1.4%) contracted. The region’s outlook for the winter is expected to darken after the ECB started its tightening cycle as record inflation levels due mostly to the surge in energy prices following Russia’s invasion of Ukraine started reducing households’ purchasing power.
