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Andrew Kenningham, the Chief European Economist at Capital Economics, has warned that the growth in the Eurozone seems to be coming from some unsustainable factors. Initial data on Monday showed that the Eurozone's GDP grew by 0.3% quarter-on-quarter in the second quarter, slightly higher than expected. However, Kenningham explains that the overall growth was driven by better-than-expected performances from some member countries, especially France and Ireland. France's economic growth data, announced last week, was boosted by net exports, a situation that is unlikely to be repeated. On the other hand, while Ireland achieved the strongest growth in the Eurozone in the second quarter, the instability of its data is widely known, as the country is more dependent on corporate profits. Therefore, the overall growth in the second quarter will not change their view on the Eurozone's economic outlook of a recession.
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