With central banks seeking to tame high inflation, monetary policy is constrained, leaving governments to ease the pain of higher inflation where possible.
Spain was the best performer, growing 1.1% after growth of just 0.2% in the previous quarter, and the main disappointment came from Germany.
Boris Johnson’s resignation triggers a leadership contest for the Conservative Party and premiership that is unlikely to be settled before the autumn.
Brexit has taken a backseat from the headlines this year, but the deadline for extending the transition period is approaching. We expect a partial trade deal to be done by the end of 2020.