Eurozone GDP Falls Less Than Estimated In Q2

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The euro area economy contracted less than initially estimated in the second quarter but the pace of decline was the most since the records began in 1995 due to the coronavirus containment measures adopted by the member countries, revised data from Eurostat revealed Tuesday.

Gross domestic product fell by a record 11.8 percent sequentially but this was revised down from -12.1 percent estimated initially. GDP had contracted 3.7 percent in the first quarter.

The annual decline in GDP was revised to 14.7 percent from 15 percent. Nonetheless, this was the biggest fall since the series began in 1995 and followed a 3.2 percent drop in the first quarter of 2020.

On the expenditure-side, household spending plunged 12.4 percent on quarter following a 4.5 percent drop in the first quarter. Government spending decreased moderately by 2.6 percent, faster than the 0.7 percent fall in the previous quarter.

The decline in gross fixed capital formation deepened to 17 percent from 5.2 percent.

Likewise, exports were down 18.8 percent, which was bigger than the first quarter's 3.9 percent fall. Imports decreased 18 percent compared to a 3.2 percent drop a quarter ago.

Further, data showed that the number of employed persons decreased by a record 2.9 percent sequentially versus a 0.3 percent drop in the first quarter. The second quarter rate was revised from -2.8 percent.

Year-on-year, employment fell 3.1 percent in the second quarter, in contrast to a 0.4 percent rise in the first quarter. The flash estimate was -2.9 percent.

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