Spain and Ireland propel European growth

Europe’s economy remained almost stagnant throughout 2023, but has seen modest growth since the start of the year, with a 0.3 percent increase in the EU’s collective economy in the second quarter. The growth was highest in Ireland, Lithuania, and Spain, while Latvia and Sweden experienced losses. Analyst Jeppe Juul Borre noted a positive shift after a year of economic stagnation, alongside decreasing inflation, rising employment, and improved confidence in Europe’s economy. Despite the slight contraction of Germany’s economy, chief economists Jeppe Juul Borre and Allan Sørensen of Dansk Industri are optimistic about increased growth rates in the coming quarters, citing lower inflation, rising purchasing power, and decreasing interest rates. They emphasize such growth is crucial for Danish exports and businesses.