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It will take time for the Eurozone economy to get back to pre-covid levels

Eurozone GDP Remains Unchanged at -12.1% for Q2

Posted Friday, August 14, 2020 by
Skerdian Meta • 1 min read

The second reading for the Eurozone GDP has been released. The flash reading showed a big contraction in the Eurozone economy by 12.1%, which was left unchanged in the second reading today. This is bigger than the 32.9% contraction we saw in the US economy, which means an 11% contraction in Q2, since the GDP released from the US is in an annualized format. At least, the trade balance increased in June in Europe.

Latest data released by Eurostat – 14 August 2020

  • Q2 GDP QoQ second reading -12.1% vs -12.1% expected prelim
  • Q2 prelim GDP at -12.1%, unchanged
  • Q2 GDP YoY -15.0% vs -15.0% prelim
  • Flash Employment Change QoQ -2.8% vs -0.2% in Q1
The preliminary report can be found here. No change to the initial release as this just reaffirms the worst quarterly contraction in the Eurozone economy on record, due to lockdown measures and the fallout from the virus outbreak in general. The focus in the market right now is all about the recovery process, so there isn’t anything new to extrapolate from the secondary release here.

Latest data released by Eurostat – 14 August 2020

  • June trade balance €17.1 billion vs €14.5 billion expected
  • May €8.0 billion; revised to €8.6 billion
  • Non-seasonally adjusted trade balance €21.1 billion
  • May non-seasonally adjusted trade balanve at €9.4 billion
Exports grew by 11.1% m/m while imports grew by 5.7% m/m, resulting in the larger-than-expected trade surplus at the end of Q2. That said, they remain well below pre-virus levels so the focus will be on whether or not the recovery can keep up in the coming months.
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