Eurozone GDP Up 2% in 2Q21 as the Bloc Recovers from Recession

Eurozone GDP rose by 2% in the second quarter 2021, as the bloc recovered from a recession triggered by the coronavirus outbreak, according to preliminary data from Eurostat.

The 19 members shared in the better-than-expected economic growth of 2% quarter-on-quarter and 13.7% year-on-year in the April to June period, compared to a contraction of 0.3 % in the first quarter.

However, the economic outlook remains fragile, since the high transmissible Delta variation has risen in recent weeks for many countries across the Euro area.   Despite the fact that hospitalizations have not been significantly affected and the number of vaccinations against the virus has doubled, some people are expected to rein in spending in the midst of continuous increases in Covid-19 cases.

Among the member countries, Portugal experienced the fastest economic growth at 4.9% compared to the previous quarter, followed by Austria (+4.3%) and Latvia (+3.7%), while Lithuania (+0.4%) and Czechia (+0.6%) experienced the slowest growth. Year on year growth rates were positive in all countries, as per figures released on Friday.