Eurozone GDP recovers quicker than expected after lockdowns: EU report

18 Sep '21

2 min read

Pic: Shutterstock

The eurozone economy recovered more rapidly than considered earlier from its winter lockdowns, according to a new report released by the European Union (EU). Seasonally adjusted gross domestic product (GDP) increased by 14.3 per cent in the euro area and by 13.8 per cent in the EU in the second quarter of 2021 compared with the same quarter of the previous year.

Compared with the previous quarter of this year, the GDP increased by 2.2 per cent in the eurozone and by 2.1 per cent in the EU in the second quarter.

Household final consumption expenditure increased by 3.7 per cent in the second quarter, as people returned to shops, hospitality venues and leisure sites.

The picture of course varies from country to country. Ireland recorded the sharpest increase of GDP compared to the previous quarter (plus 6.3 per cent), followed by Portugal (plus 4.9 per cent), the report said.

Declines were observed in Malta (minus 0.5 per cent) and Croatia (minus 0.2 per cent).

Government spending also boosted growth, through stimulus packages and health measures to fight the COVID-19 pandemic.

The number of employed persons increased by 0.7 per cent in both the euro area and in the EU in the second quarter compared with the previous quarter. In the first quarter this year, employment had decreased by 0.2 per cent in both the euro area and the EU, the report added.

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