Eurozone growth slower than forecast

Gross domestic product (GDP) for the entire eurozone added 0.3 percent in the second quarter, compared with the previous three months, according to official figures, while output compared with the same period a year ago was 1.2 percent higher.

Earlier on Friday, Germany, the bloc's biggest economy, reported growth of 0.4 percent in the second quarter, buoyed by exports, but dampened by slowing investment and dwindling inventories.

France, the eurozone's number-two economy, also disappointed - growth in the second quarter stalled unexpectedly, after a strong first quarter. Lackluster consumer spending and lower inventories were the main culprits there.

In Italy, GDP added a mere 0.2 percent, boosted by services but dragged down by a struggling manufacturing sector. The figure was weaker than that of crisis-hit Greece, which logged growth of 0.8 percent in the same quarter, boosted by tourism.

Disappointing figures

Spain reported second-quarter GDP growth of 1 percent, but the International Monetary Fund (IMF) warned Madrid on Friday not to let up on its reform program, which has already had a marked effect on the economy.

The statistics come a day after the European Central Bank (ECB) published the minutes of its last rate-setting meeting, where it described the recovery as moderate and gradual despite its massive 1.14-trillion-euro ($1.3-trillion) sovereign bond purchase scheme - so-called quantitative easing, or QE. The ECB called the latest eurozone growth data "disappointing"

The overall outlook for the eurozone remains tepid, with the slowdown in China weighing on economies across the globe.

ng/uhe (Reuters, AFP, dpa)