Eurozone: GDP up by 12.6% and employment up by 0.9% in the third quarter

According to the flash report from Eurostat, in the third quarter of 2020, seasonally adjusted GDP increased by 12.6% in the euro area and by 11.6% in the EU compared with the previous quarter. These were by far the sharpest increases observed since time series started in 1995, and a rebound compared with the second quarter of 2020, when GDP had decreased by 11.8% in the euro area and by 11.4% in the EU. Economists had expected a 12.7% increase in the euro area.

Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 4.4% in the euro area and by 4.3% in the EU in the third quarter of 2020, which represents a partial recovery after -14.8% and -13.9% respectively in the previous quarter.

The number of employed persons increased by 0.9% in both the euro area and in the EU in the third quarter of 2020, compared with the previous quarter. These were the strongest increases observed since time series started in 1995. In the second quarter of 2020, employment had decreased by 2.9% in the euro area and by 2.7% in the EU.

Compared with the same quarter of the previous year, employment decreased by 2.0% in the euro area and by 1.8% in the EU in the third quarter of 2020, after -3.1% and -2.9% in the second quarter of 2020