EU GDP Growth Accelerates in Latest Quarter

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The European Union (EU) has seen a significant acceleration in its economic growth in the latest quarter, according to figures released by the European Commission.

The EU’s gross domestic product (GDP) grew by 0.6% in the three months to the end of June, compared to 0.4% in the previous quarter. This marks the fastest rate of growth since the start of the year and is a sign that the region’s economy is continuing to recover from the effects of the coronavirus pandemic.

The figures also show that the EU’s economy is now 1.3% larger than it was before the pandemic began. This is a significant improvement from the 3.7% contraction seen in the first quarter of 2020.

The acceleration in growth was driven by a strong performance in the services sector, which accounts for around two-thirds of the EU’s GDP. This was supported by a rebound in consumer spending, as well as a recovery in the tourism and hospitality industries.

The manufacturing sector also saw a strong performance, with output increasing by 1.2% in the second quarter. This was driven by a surge in demand for medical equipment and other goods related to the pandemic.

The figures also show that the EU’s unemployment rate fell to 7.4% in June, down from 8.1% in the previous quarter. This is the lowest rate since the start of the pandemic and is a sign that the region’s labor market is beginning to recover.

Overall, the figures suggest that the EU’s economy is continuing to recover from the effects of the pandemic. However, the region still faces significant challenges, including the risk of a second wave of infections and the potential for further economic disruption.

The European Commission has warned that the recovery is likely to be slow and uneven, with some countries and sectors likely to take longer to recover than others. It is also likely that the region’s economic growth will remain below pre-pandemic levels for some time.

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