Eurozone GDP fell more than forecast in the second quarter

According to the report from Eurostat, in the second quarter 2020, still marked by COVID-19 containment measures in most Member States, seasonally adjusted GDP decreased by 12.1% in the euro area and by 11.9% in the EU, compared with the previous quarter. These were by far the sharpest declines observed since time series started in 1995. Economists had expected a 12.0% decrease in the euro area. In the first quarter of 2020 GDP had decreased by 3.6% in the euro area and by 3.2% in the EU.

These preliminary GDP flash estimates are based on data sources that are incomplete and subject to further revisions under the COVID 19 containment measures. The next estimates for the second quarter of 2020 will be released on 14 August 2020.

Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 15.0% in the euro area and by 14.4% in the EU in the second quarter of 2020, after -3.1% and -2.5% respectively in the previous quarter. These were also by far the sharpest declines since time series started in 1995. Economists had expected a 14.5% decrease in the euro area.

Among the Member States, for which data are available for the second quarter 2020, Spain (-18.5%) recorded the highest decline compared to the previous quarter, followed by Portugal (-14.1%) and France (-13.8%). Lithuania (-5.1%) recorded the lowest decline.