Euro zone Q2 annual growth estimate upgraded

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"The development of foreign trade, however, had a downward effect on growth because the price-adjusted quarter-on-quarter increase in imports was considerably larger than that of exports".

But the growth rate for the first quarter was revised up to 0.7 percent from 0.6 percent, and the April-June expansion marked a 12th consecutive quarter of growth.

"The same holds for the export sector, where a stronger euro, weaker-than-expected US growth and Brexit uncertainty could take some wind out of the sails without bringing exports to a halt", Brzeski said.

"The unemployment rate is very low, the economy has done very well particularly by the eurozone standards, so it's quite possible that it will boost support for the incumbent party".

"The economy looks strong and robust", supported by domestic demand, said Andreas Rees, UniCredit's chief Germany economist.

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Germany's federal statistics office has reported slower growth of the economy in the second quarter of this year.

However, it was a strong enough result to help push the annual rate of growth up to 2.1%, Germany's fast rate of growth since the first quarter of 2014.

The continued upswing will likely bolster Chancellor Angela Merkel ahead of the September 24 vote, with polls giving her conservatives a double-digit lead over their junior coalition partners, the Social Democrats. The Statistics Office will publish its detailed GDP growth data on August 25.

The euro has also risen about 10 percent against the dollar this year — to a 30-month high above $1.19 earlier this month — on the back of strong eurozone economic data, waning fears of a wave of populist politicians taking power across Europe, as well as uncertainty over the economic program of U.S. President Donald Trump.

The euro area economy expanded as initially estimated in the second quarter, flash estimate from Eurostat showed Wednesday. In the first quarter of 2017, GDP grew by 0.5 percent in both zones.