The euro area economy recovered from a technical recession in the second quarter with the reopening of member-country economies after the coronavirus lockdowns, flash estimate from Eurostat showed on Tuesday.
Gross domestic product grew 2 percent sequentially, in contrast to a 0.3 percent drop in the first quarter. The quarter-on-quarter growth rate matched the flash estimate released on July 30.
On a yearly basis, GDP rebounded 13.6 percent after shrinking 1.3 percent in the first quarter. The annual rate was revised down from 13.7 percent. The detailed breakdown for euro-zone GDP has not yet been released.
The strong growth in the Eurozone GDP in the second quarter is likely to be repeated in the third quarter despite the spread of the Delta variant, and should bring the economy back towards its pre-virus size in the coming months, Jessica Hinds, an economist at Capital Economics, said.
But the southern economies continue to lag, with travel restrictions still holding back their tourism sectors, the economist noted.
The European Commission projected the currency bloc to grow 4.8 percent in 2021 and 4.5 percent next year.
Data showed that the number of employed persons in Eurozone increased 0.5 percent sequentially, reversing a 0.2 percent fall in the first quarter.
Year-on-year, employment rebounded 1.8 percent, offsetting last quarter’s 1.8 percent decline.
The EU27 GDP was up 1.9 percent and reversed the 0.1 percent drop in the first quarter. On a yearly basis, GDP advanced 13.2 percent after falling 1.3 percent a quarter ago. Both quarterly and annual estimates were confirmed.
The statistical office is slated to issue revised data for the second quarter on September 7.