The eurozone economy enjoyed modest growth in the April-June quarter as The United States exceeded expectationswhich highlighted a growing transatlantic rift with Germany.
The European Union’s largest economy continues to fail to recover as reluctant consumers save more instead of spending on new cars or homes.
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, according to official figures published on Tuesday by Eurostat, the EU’s statistical agency. Germany, the largest economy in the group, contracted again with a 0.1% drop in GDP.
Tuesday’s figures follow a similar 0.3% rise for the January-March quarter, the first significant increase after more than a year of stagnation around zero.
In contrast, the U.S. economy grew 0.7 percent in the second quarter compared with the previous quarter, or 2.8 percent year-on-year.
American consumers are spending freely, and government spending with a higher budget deficit and subsidies for business investments in renewable energy, semiconductors and infrastructure are also contributing to American growth.
These trends are being reversed in Europe, where consumers are saving at record levels and governments have begun to restrict spending to reduce their budget deficits.
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