Eurozone Growth, Inflation Accelerate, but Recession Looms Later in Year

Eurozone Growth, Inflation Accelerate, but Recession Looms Later in Year
A woman looks at a shop window with a sign reading "Sales" on the eve of the start of summer sales in Nantes, France, on June 21, 2022. Stephane Mahe/Reuters
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BRUSSELS/FRANKFURT—The eurozone economy grew much faster than expected in the second quarter, but economists said it might be the economy’s last hurrah before ever-higher inflation and supply chain problems cause a mild recession in the second half of the year.

The stronger growth came despite stagnation in the bloc’s biggest economy Germany, where high inflation and fears of a gas crisis triggered by the war in Ukraine have caused consumer and business sentiment to plummet, economists said.