The
euro zone announced its final reading of the second-quarter GDP on Tuesday,
which showed a better-than-expected contraction of the economy, but it remains
the worst contraction the euro area has ever experienced.
The
final reading of the GDP witnessed a contraction of 11.8% at the quarterly
level during the second quarter of this year, compared with expectations that
indicated a contraction of 12.1%.
As
for the annual reading, it showed a contraction of growth of 14.7% and
expectations were for a contraction of 15.0%, while the previous reading
indicated a contraction of 3.2%.
The
declines were widespread, as household consumption decreased by 12.4 percent
due to lockdown restrictions related to the Corona pandemic, the investment
rate slipped 17 percent and government spending dipped 2.6 percent.
On the other hand,
exports fell 18.8% and imports plunged 18%. Among the largest economies in the
Eurozone that recorded a sharp contraction was Spain, which recorded the
largest drop in economic activity by -18.5%, followed by France with -13.8%,
Italy by -12.8% and Germany by -9.7%.
