Eurozone Recovery Regains Momentum in Q2

Q2 FLASH GDP +2.0% Q/Q SA, +13.6% Y/Y WDA (Q1 -0.3% Q/Q)
Q2 Y/Y FLASH GDP REVISED DOWN 0.1% FROM PRELIM. FLASH

---------------------------------------------------------------------------

• The eurozone economy expanded by 2.0% in Q2, according to a flash estimate, unchanged from the first iteration, following a 0.3% increase in Q1.
• That takes output 13.6% above the same period of 2021, slightly below the first estimate of a 13.7% rise, Eurostat said Tuesday.
• German output rose by 1.5% in Q2, while France expanded by 0.9%, Italy increased by 2.7% and Spain improved by 2.8%.
• Eurozone growth outpaced the 1.6% q/q expansion in the US and the 1.3% growth in China, although both larger economies have recovered output lost to Covid, while the eurozone is unlikely to return to pre-Covid levels until later this year at the earliest. The UK expanded by 4.8% between April and June, but remains 4.4% below its level at the end of 2019.
• Employment across the eurozone rose by 0.5 in Q2, after a 0.2% decline in the opening three months of the year. On an annual basis, eurozone employment rose by 1.8% in Q2, after slumping by 1.8% in the same period of 2020.