Euro zone GDP grows 0.9% in second quarter

The Euro zone's gross domestic product grew 0.9 percent in the second quarter of 2006, compared to the previous quarter, estimated Eurostat, the statistical service of the European Union (EU), on Friday.

The GDP growth rate was 2.6 percent compared to the same quarter last year.

The second quarter growth rates were higher than the first quarter of 2006, both in quarterly and annual terms, which were 0.8 percent and 2.1 percent of growth rates respectively in the first quarter of 2006.

During the second quarter of 2006, investments grew strongly by 2.1 percent in the euro zone. Household final consumption expenditure increased by 0.3 percent in this period. Exports and imports rose 1.3 percent and 1.2 percent respectively.

In the whole 25-member EU, the GDP also grew 0.9 percent in the second quarter of 2006, compared with the previous quarter. Year on year, it grew 2.8 percent.

The EU-wide figures were also higher than in the first quarter of 2006 when the GDP grew 0.8 percent quarter on quarter and 2.4 percent year on year.

In the second quarter of 2006, EU-wide investments grew 1.9 percent and household expenditure 0.5 percent. Exports and imports both rose by 1.9 percent.

As a comparison, U.S. GDP growth was 0.7 percent in the second quarter of 2006, after an increase of 1.4 percent in the first quarter. In Japan, GDP grew by 0.2 percent in the second quarter, after an increase of 0.7 percent in the previous quarter.

Compared to the second quarter of 2005, GDP rose by 3.6 percent in the United States and by 2.2 percent in Japan.

Source: Xinhua