Eurozone Q3 GDP up 12.5% as demand rebounds after lockdowns

LONDON (ICIS)–Eurozone GDP rose 12.5% quarter on quarter in July-September as demand rebounded by the highest level on record after the lockdowns across much of Europe in the April-June quarter, statistics body Eurostat said on Tuesday.

The increase is the sharpest since Eurostat began recording GDP movements in 1995.

Demand across the 19-country currency union surged in the third quarter, and productivity increased after the near-total shutdown of swathes of European business in the early stages of the coronavirus pandemic.

The wider, 27-country EU economy expanded by 11.5% over the same period.

The eurozone and EU economies had contracted by 11.7% and 11.3%, respectively, in the second quarter of the year.

Household spending helped drive the rally, while exports jumped over 17% in both regions after slumping by nearly 19% during the previous quarter.

The level of growth seen during the period puts European GDP volume slightly above the level seen in the first quarter of 2017.

The US economy grew 7.4% during the quarter after a 9% drop in April-June, Eurostat added.

GDP growth rates by country
Click on image to enlarge