Wednesday, January 19

Euro zone GDP grew 2.2% in the third quarter and accelerated employment growth to 0.9%

The Gross Domestic Product (GDP) of the euro zone registered an expansion of 2.2% in the third quarter of the year, in line with the data for the second quarter, which has been revised up one tenth, according to the latest estimate published by Eurostat, which boosted employment growth by 0.9%, one tenth above the increase observed in the second trimester.

For the European Union (EU) as a whole, the growth of the GDP estimated by Eurostat in the third quarter of 2021 stood at 2.1%, the same as between April and June, while occupancy grew 0.9%, compared to the 0.8% registered in the second quarter.

Compared to the third quarter of 2020, the GDP of the euro zone grew by 3.9%, while that of the Twenty-seven expanded by 4.1%. On its side, the annual occupation rate 2.1% in both cases.

The growth of the GDP of the euro area in the third quarter contrasts with the evolution of the cycle in the United States, where GDP expansion slowed substantially between July and September, with growth of 0.5% compared to 1.6% in the second quarter and 1.5% in the first three months of 2021.

The Spanish economy, with a GDP growth in the third quarter of 2% compared to the second, once again maintained a quarterly evolution worse than the euro zone average, as has happened in each quarter of 2021.

Thus, in the second quarter of 2021, Spain had grown by 1.1%, compared to 2.2% in the euro area, and in the first three months of the year, Spanish GDP contracted by 0.6%, compared to to the 0.2% average decline in the euro area, which has also been improved by one tenth by Eurostat.

All EU countries for which data were available posted positive GDP growth rates in the third quarter, except Lithuania (0%). The highest quarterly expansion rate between July and September corresponded to Austria (3.8%), ahead of France (3%) and Portugal (2.9%), while the smallest increases were observed in Slovakia and Romania (0 ,4%).

Job growth

Secondly, In the third quarter of the year, occupancy increased by 0.9% both in the euro area and in the EU, accelerating in both cases one tenth with respect to the data corresponding to the second quarter. Likewise, in relation to the third quarter of 2020, employment increased in the two regions by 2.1%.

Among the EU countries, the largest quarterly increase in occupancy in the third quarter was recorded in Ireland (4%), ahead of Spain (+ 2.6%), Lithuania (+ 2.1%), Estonia and Greece (both + 1.9%), while a drop in employment was only observed in Latvia (-2%) and the data se remained stable in Finland.

On his side, hehours worked increased by 2.2% in the euro zone and 1.7% in the EU in the third quarter. Compared to the same quarter of the previous year, the increases were 3.4% in the euro area and 3.3% in the EU.