Eurozone GDP Shrinks Less Than Forecast In Q1

The European Statistical Office (Eurostat) presented data on the dynamics of eurozone GDP in the first quarter, the decline of which was less significant than previously expected by Eurostat.

In the previous quarter, the Eurozone’s GDP declined by 0.3%, whereas previously it had been forecast to decline by 0.6%. The decline to the first quarter of last year was 1.3%, the forecast was -1.8%. EU GDP fell by 0.1% on the previous quarter and by 1.2% on the same quarter last year.

Eurostat notes that the flattening of eurozone and EU GDP dynamics came after the fourth quarter of 2020, when the declines were a substantial -0.6% and -0.4% respectively, and a sharp rebound in the third quarter, of 12.6% in the eurozone and 11.7% in the EU. The countries that grew the most in the first quarter were Ireland (7.8%), Croatia (5.8%) and Estonia (4.8%). The worst performers were Portugal (-3.3%), Slovakia (-2%) and Germany (-1.8%).

Eurostat also provided data on employment – in the Eurozone the decline was 0.3% compared to the previous quarter, in the EU 0.2%. Against the same quarter last year, the decline in employment was 1.8% in the eurozone and 1.6% in the EU. The countries with the strongest employment declines were Latvia (-3.9%), Greece (-1.7%) and Slovakia (-1.1%). The highest employment growth was shown in Hungary (1.1%), Spain (1%), and Cyprus and Lithuania (0.8% each).


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