Eurozone’s GDP increases 2.2 percent in Q2, while employment advances 0.7 percent

Eurostat, the statistical office of the European Union (EU), reported on Tuesday its second estimates showed that Eurozone GDP grew by 2.2 percent q-o-q in the second quarter of 2021, compared with a preliminary estimate of 2.0 percent q-o-q advance. In the first quarter of 2021, the GDP fell by 0.3 percent q-o-q.

In y-o-y terms, Eurozone’s economy expanded 14.3 percent in the second quarter compared to +13.6 percent in the previous estimate and -1.3 percent in the prior three-month period. That was the sharpest increase on record.

Economists had forecast that both final quarterly and annual rates of the GDP growth would be left unrevised.

According to the report, household consumption expenditure jumped 3.7 percent q-o-q in the second quarter, while government consumption expenditure increased by 1.2 percent q-o-q and gross fixed capital formation rose 1.1 percent q-o-q.

Among the euro area’s countries, Ireland (+6.3 percent) recorded the sharpest q-o-q rise in GDP, followed by Portugal (+4.9 percent) and Latvia (+4.4 percent). At the same time, Malta (-0.5 percent) posted the biggest decline.

The report also revealed that employment in Eurozone in the second quarter increased by 0.7 percent q-o-q and surged 1.8 percent y-o-y. In the previous quarter, the number of persons employed fell 0.2 percent q-o-q and 1.8 percent y-o-y. Economists had forecast both readings to remain unrevised compared to preliminary estimates, showing a 0.5 percent q-o-q advance and a 1.8 percent y-o-y climb for the second quarter.