According to a preliminary estimate by Eurostat, the statistics agency for the eurozone, the region's gross domestic product (GDP) experienced growth of 0.3% during the second quarter of

2023. In contrast, the European Union's GDP remained stable.

Comparatively, the eurozone's GDP showed no change in the first quarter of the same year, while the EU's GDP had grown by 0.2% during that period.

Ireland recorded the highest economic growth in the second quarter with a remarkable 3.3% increase, followed by Lithuania with 2.8%. Belgium contributed to the growth with a modest 0.2% increase.

However, experts caution that the positive economic performance might be influenced by Ireland's results, which are known to be volatile due to the presence of many US companies' European headquarters.

Regarding inflation, Eurostat reports that eurozone inflation is anticipated to decline to 5.3% in July, down from 5.5% in June. This is the lowest level of inflation seen since January 2022, prior to Russia's invasion of Ukraine. The reduction in inflation can be attributed to lower prices for food, alcohol, and tobacco, while energy costs have become more affordable.

Despite the overall decline in inflation, core inflation, which excludes food and energy prices, has stubbornly remained at 5.5%. This has raised concerns among experts, potentially leading to a delay in the European Central Bank's interest rate reductions until late 2024.

Several countries within the eurozone continue to grapple with high inflation rates. Germany, France, Italy, and Spain, as the region's major economies, are experiencing inflation rates above 5% for July. Meanwhile, Belgium's inflation rate is expected to remain stable, but its core inflation rate should decrease to 7.9% in the same month. Photo by Eric Chan, Wikimedia commons.