Eurozone GDP fell less than expected in the fourth quarter, employment grew moderately

According to the report from Eurostat, in the fourth quarter of 2020, seasonally adjusted GDP decreased by 0.6% in the euro area and by 0.4% in the EU, compared with the previous quarter. Economists had expected a 0.7% decrease. Declines follow a strong rebound in the third quarter of 2020 (+12.4% in the euro area and +11.5% in the EU) and the sharpest decreases since the time series started in 1995 observed in the second quarter of 2020 (-11.7% in the euro area and -11.4% in the EU).

According to a first estimation of annual growth for 2020, based on seasonally and calendar adjusted quarterly data, GDP fell by 6.8% in the euro area and 6.4% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 5.0% in the euro area and by 4.8% in the EU in the fourth quarter of 2020, after -4.3% and -4.2% respectively in the previous quarter.

The number of employed persons increased by 0.3% in both the euro area and in the EU in the fourth quarter of 2020, compared with the previous quarter. In the third quarter of 2020, employment had increased by 1.0% in the euro area and by 0.9% in the EU.

Compared with the same quarter of the previous year, employment decreased by 2.0% in the euro area and by 1.7% in the EU in the fourth quarter of 2020, after -2.3% and -2.1% in the third quarter of 2020.