Commenting on the Eurozone GDP data, Commerzbank analyst, Christoph Weil said not every nation in the Eurozone got over the recession. This indicates that the crisis was not caused entirely by global factors. Spain, the Netherlands and Italy contracted sharply in the second quarter and would be trailing the field in the second half as well.
The euro area shrank 0.1% sequentially in the second quarter. This was much slower than the 2.5% decline seen in the first quarter.
Weil said the main reasons behind the stabilization of region's economy are strengthening global demand and rising confidence in the economy which resulted in the implementation of investment plans by companies. Also, measures adopted across the region to boost consumption, especially the new-for-old car subsidies produced desired effect.
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