Final Q2 GDP Revised Modestly Higher

EZ Q2 FINAL GDP -11.8% Q/Q SA, -14.7% Y/Y WDA; Prev(Q1): -3.7% Q/Q SA, -3.2% Y/Y WDA

EZ Q2 FINAL GDP REVISED FROM FLASH -12.1% Q/Q SA, -15.0% Y/Y WDA

• The final estimate of EZ GDP was revised up marginally by 0.3pp to -11.8% q/q and -15.0% y/y, still showing by far the sharpest contraction since the series began in 1995.
• Every major category showed a quarterly decline in Q2 with Exports showing the largest fall, down by 18.8% and having the largest downward contribution on GDP (-9.1pp).
• While household consumption plunged 12.4%, deducting 6.6pp from growth, gross fixed capital formation slumped 17.0%.
• Gov. expenditure saw the smallest decrease of 2.6%, shaving off only 0.6% from GDP.
• Every member state posted a q/q and y/y decline with Spain (-18.5%), Greece (-14.0%) and Portugal (-13.9%) showing the largest q/q drops, while Finland (-4.5%), Lithuania (-5.5%) and Estonia (-5.6%) recorded the smallest rates.
• Employment in the EZ slumped 2.9% in Q2, however a stronger decline was prevent by gov. support schemes.
• Meanwhile, hours worked fell sharply by 12.8% in Q2 and both hours worked and employment showed by far the biggest declines on record.