BRUSSELS, (Pakistan Point News - APP - 29th july,2016) - Growth in the eurozone halved in the second quarter, official data showed on Friday, with analysts warning that the consequences of Brexit could harm the economy further later in the year. The Eurostat statistics agency said economic growth in the 19-nation single Currency bloc slowed to 0.3 percent in the April to June period, with stagnation in France largely contributing to the poor data.
This was down from a far more robust expansion of 0.6 percent in the previous quarter, though analysts had said that result was due to a surprisingly warm winter in Europe. The latest figures were in line with forecasts of analysts surveyed by data company Factset, and meant the eurozone grew by 1.6 percent over 12 months. The period covered by the gross domestic product (GDP) data largely pre-dates the shock vote in late June by non-euro Britain, which the European Central Bank warned would negatively influence growth in Europe for years to come.
Signals so far are that economic activity in the eurozone is proving resilient despite the vote, after strong initial shocks rocked the financial markets. "The good news is that the economy still has some momentum, though there is little acceleration to be expected as long as the Brexit story continues to inject some uncertainty into the external environment," said Peter Vanden Houte, chief economist at ING Bank in Brussels.