European Economy: ECB under pressure to boost growth, analysts say

Berlin - Is the German economy stagnating?

Stagnation in eurozone growth has put pressure on the European Central Bank (ECB) to take measures to stimulate the European economy, analysts say.

Growth in the eurozone flatlined in the second quarter, and inflation also dropped, according to official figures.

The eurozone saw 0.0% growth compared with the first quarter, according to Eurostat figures.

Economists said that the figures would add to calls for the ECB to take action to boost growth and avoid deflation.

"Disappointing euro area growth and intensifying disinflation pressures increase the pressure on the ECB for further action in coming months," said Nick Stamenkovic, a strategist at RIA Capital Markets in Edinburgh.


"If the economy disappoints in the second half then the pressure on the ECB to start money-printing in early 2015 will intensify."

Schroders European economist Azad Zangana said: "There will undoubtedly be more pressure on the ECB to do more to boost growth.

"However, ECB president Mario Draghi is likely to argue that stimulus measures announced earlier this summer have yet to feed into financial markets or the real economy."

On Thursday official figures showed that the economic bloc's two largest economies, France and Germany, had both performed worse than expected.

Germany's Federal Statistics Office said the economy was "losing momentum".

German GDP contracted by 0.2% in the three months to the end of June, figures show, after growing by 0.7% in the first quarter.

Read more: BBC News - ECB under pressure to boost growth, analysts say