The euro-area economy strengthened in the second quarter as more of its member countries joined into the recovery.

The 2.6% annualized rate of expansion in the second quarter was supported by continued growth in Germany (2.5% growth), the region’s largest economy, and the strongest Spanish performance in almost two years (3.5% growth).

Indeed, after years of unprecedented stimulus, the euro area upswing is finally starting to spread across the 19-member currency region. 

Even though the zones economic revival comes with steadily declining unemployment and relatively robust business confidence, price pressures have so far remained largely elusive.

Nonetheless, the European Central Bank (ECB) believes that inflation will eventually pick up as wages improve and economic slack abates.

The OECD expects the euro area economy to expand 2.1% this year and 2.4% in 2018.