annual growth graph

Drilling down into the data to look at smaller economies, Hungary was the fastest growing, expanding at a quarterly rate of 1.1%, followed by Slovakia and Poland, both expanding at 0.9%. Spain, Bulgaria, and Cyprus all grew by 0.7%.

Year on year, the fastest growing economy was Romania, which expanded at a stunning 5.9%, Slovakia grew by 3.7% and Spain by 3.2%.

Jonathan Loynes, Chief European Economist at Capital Economics said: "Looking ahead, recent survey indicators such as the Composite PMI suggest that Q2’s growth rate has been sustained at the start of Q3. But growth could yet slow further as the previous boosts from the declines in the euro and oil prices continue to fade. Meanwhile, there are potential downside risks from the UK’s Brexit vote and political uncertainty in some countries like Italy and Spain.”

He added: “With few signs that governments are about the loosen the fiscal reins, the onus remains on the ECB to provide the additional support needed to boost the recovery and push inflation back up towards its target.”