Eurozone: Euro area exits longest recession in history
August 14, 2013
In the second quarter, the Eurozone's GDP rose 0.3% over the previous period, according to the flash estimate released by the statistical office (Eurostat) on 14 August. The Q2 reading marked the end of the streak of six consecutive quarters of contraction - the longest recession in the Eurozone's history. In addition, the expansion exceeded the 0.2% rise expected by the markets. On an annual basis, the economy contracted 0.7%, which marks an improvement over the 1.2% drop recorded in the previous quarter.
Looking at the four major countries in the region, Germany - which accounts for nearly 30% of the Eurozone's output - recorded the strongest expansion (Q1 2013: 0.0% quarter-on-quarter; Q2 2013: +0.7% qoq). France expanded 0.5% compared to the previous quarter (Q1: -0.2% qoq). Meanwhile, Spain contracted 0.1% over the previous quarter (Q2: -0.5% qoq) and Italy dropped 0.2% (Q1: -0.6% qoq).
FocusEconomics panellists expect the economy to contract 0.4% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, panellists expect the economy to expand 1.0%.
Author: Armando Ciccarelli, Head of Data Solutions