Euro Area GDP Q3 2021

Euro Area: Third estimate confirms GDP continued to expand at healthy pace in Q3

December 8, 2021

According to a third estimate, the Euro area economy expanded a seasonally-adjusted 2.2% from the previous quarter in Q3, which followed Q2’s 2.2% increase and marked an improvement from the 2.1% rise reported in the preliminary releases. Compared with the same quarter of the previous year, seasonally-adjusted GDP expanded 3.9% in Q3, softening from Q2’s 14.4% jump on a fading base effect, but coming in above the preliminary estimate of a 3.7% rise.

The quarterly expansion came amid easing Covid-19-related containment measures throughout the single currency union, supporting household spending. Private consumption soared 4.1% over the previous quarter in Q3 (Q2: +3.9% s.a. qoq) amid improved consumer sentiment and labor market dynamics. However, fixed investment fell 0.9% (Q2: +1.3% s.a. qoq), while public consumption growth cooled (Q3: +0.3% s.a. qoq; Q2: +2.1% s.a. qoq). Additionally, restocking subtracted 0.1 percentage points from growth, as companies faced protracted supply disruptions.

Meanwhile, the external sector contributed 0.3 percentage points to the overall reading, as exports increased 1.2% (Q2: +2.4% s.a. qoq), and imports rose 0.7% (Q2: +2.9% s.a. qoq).

In terms of specific countries, the sharpest expansion among the major players was recorded in France (Q3: +3.0% s.a. qoq), followed by Italy (Q3: +2.6% s.a. qoq), Spain (Q3: +2.0% s.a. qoq) and Germany (Q3: +1.7% s.a. qoq).

The economy is seen expanding 4.8% in 2022, which is unchanged from last month’s forecast. In 2023, GDP is seen increasing 3.1%.

Author: Massimo Bassetti, Senior Economist

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Euro Area GDP Chart

Euro Area GDP Q3  2021 0

Note: Quarter-on-quarter changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Eurostat.

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