The eurozone recorded a slight economic recovery in the second quarter of the year, but it still faces ongoing challenges in Germany, according to preliminary estimates released by Eurostat on Monday.

The gross domestic product (GDP) of the twenty countries sharing the common currency increased by 0.3 percent on a quarterly basis between April and June, after registering a 0 percent contraction in the first quarter, according to the revised figures published by the institute.

However, the annual inflation rate continued its decline in July, reaching 5.3 percent after recording 5.5 percent in June and 6.1 percent in May, benefiting from another drop in energy prices, according to Eurostat.

Nevertheless, consumer prices remain elevated, especially for food products (10.8 percent, down from 11.6 percent in June), according to detailed data.

The growth rate still remains significantly below the 2 percent target set by the European Central Bank.