Eurozone GDP in the first quarter contracted less than expected

The European Statistical Office (Eurostat) presented data on the dynamics of the eurozone’s GDP in the first cartoal, the decline of which turned out to be less significant than previously expected by Eurostat. By the previous quarter, the decline in GDP of the euro area countries amounted to 0.3%, while earlier forecast for a decline of 0.6%. The decline to the first quarter of last year amounted to 1.3%, the forecast was at the level of -1.8%. EU GDP contracted 0.1% qoq and 1.2% qoq last year.

Eurostat notes that the smoothing of the dynamics of GDP in the eurozone and the EU occurred after the fourth quarter of 2020, when the decline was more significant -0.6% and -0.4%, respectively, and a sharp rebound in the third quarter – by 12.6% in the eurozone and 11 , 7% in the EU. Most of all in the first quarter GDP grew in such countries as Ireland (7.8%), Croatia (5.8%) and Estonia (4.8%). The worst were in Portugal (–3.3%), Slovakia (–2%) and Germany (–1.8%).

Eurostat also presented data on employment – in the eurozone, the decline compared to the previous quarter was 0.3%, in the EU – 0.2%. By the same quarter of last year, the decline in employment in the euro area was 1.8%, in the EU – 1.6%. The largest decline in employment was observed in countries such as Latvia (–3.9%), Greece (–1.7%) and Slovakia (–1.1%). The highest employment growth was demonstrated in Hungary (1.1%), Spain (1%), as well as in Cyprus and Lithuania (0.8% each).

Evgeny Khvostik

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