Eurozone: GDP surpasses expectations in Q22021 – UOB

Economist Lee Sue Ann at UOB Group comments on the recently published GDP data in the euro area.

Key Takeaways

“The Eurozone economy grew more than initially estimated in 2Q21, according to the final estimate released by Eurostat on Tuesday (7 September). GDP expanded by 2.2% q/q in the final estimate for the period, faster than the 2.0% q/q pace reported in the second estimate. This follows a -0.3% q/q decline in 1Q21. On a y/y basis, the Eurozone economy expanded by 14.3% y/y, beating expectations and the second estimate of 13.6% y/y. The y/y decline in 1Q21 was revised to -1.2% y/y from -1.3% y/y in the second estimate.”

“The recovery remains uneven, though, as the COVID-19 pandemic continues to pose challenges. New waves of infection have afflicted both advanced and emerging European economies. That said, the vaccination campaign in Europe has now become one of the frontrunners, and the economy is seen returning to the pre-crisis level in the first half of next year.”