The Eurozone GDP Contracted Less Than Expected But Did Not Prevent The European Indices From Falling

Access To Financial Markets Made Easy • Sep 8, 2020 at 9:09 AM EDT

Despite the data being better than predicted, the main European indices recorded drops of close to 1% at noon, since it is the steepest economic decline in the entire historical series, which began in 1995.

The Gross Domestic Product (GDP) of the Eurozone contracted by 11.8% in the second quarter of the year compared to the previous quarter, a figure somewhat better than the initial estimates, which anticipated a decline of 12.1%. In year-on-year terms, the data published today by Eurostat also improves the forecast: GDP fell between April and June by 14.7% compared to the same period in 2019, next to the 15% previously estimated.

In the first three months of this year, the contraction was already 3.7% quarter-on-quarter and 3.2% year-on-year.

Spain, Greece, Portugal and France recorded the steepest contractions in the Euro Zone during this period.

(Click on image to enlarge)

GDP growth rates second quarter

Source: Eurostat.

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