Eurozone GDP in Contraction, But Trade Surplus Increases
The second reading for Eurozone Q1 GDP remained unchanged, but trade balance increased
The Eurozone economy was already in the brink of recession last year, with manufacturing and industrial production contracting for most of the year, following the trade war between US and China. Only services were keeping the major economies of the continent afloat. But, as the coronavirus broke out and everyone got locked in, the situation had to get worse.
In the first estimate of Q1 GDP report for this year, the economy showed a 3.8% contraction, which is where it remained in the second reading. Although, this month the second reading remained unchanged for Q1, but the YoY reading was revised a tick higher. That doesn’t change much and the worst is yet to come in Q2. Below is the second estimate report for Q1 of 2020:
Eurozone Q1 2nd Estimate by Eurostat – 15 April 2020
- Q1 GDP second estimate -3.8% vs -3.8% prelim
- GDP YoY -3.2% vs -3.3% prelim
Eurozone March Trade Balance Report by Eurostat – 15 May 2020
- March trade balance €23.5 billion vs €17.0 billion expected
- February stood at €25.8 billion; revised to €25.6 billion
- Non-seasonally adjusted trade balance €28.2 billion
- February non-seasonally adjusted trade balance €23.0 billion
The trade balance on the other hand is showing a decent increase in March. Exports fell by 8.9% on the month while imports fell by 9.0% on the month to wrap up Q1 as lock-down measures and the impact of the virus outbreak weighed on trade. Again, April is expected to be worse and this will feed into more subdued conditions in Q2 as well.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals