Europe records 1 percent growth following Germany's recovery

The economy in the 16-nation eurozone grew by 1.0 percent between April and June, compared to quarter-on-quarter growth of 0.4 percent in the United States and 0.1 percent in Japan, the European Union's data agency said.

Europe was pulled up by Germany's best quarterly performance since reunification in 1990, with growth of 2.2 percent, according to the Eurostat figures, which confirmed a previous estimate.

“The breakdown of eurozone GDP in the second quarter was relatively encouraging,” said Howard Archer, chief European economist at research group IHS Global Insight.

But, he cautioned, “the eurozone recovery looks likely to lose some momentum over the coming months in the face of serious headwinds.”

The challenges facing Europe include major spending cuts in heavily indebted countries across Europe which will “increasingly” kick in, likely slower global growth and inventory developments becoming less favorable, Archer said.

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