Consumer Spending And Exports Drive Growth in Eurozone to a Record High

The European Union’s statistics office said that the euro zone economy recorded the highest quarterly growth rate in the summer, recovering from a record contraction due to the Covid-19 pandemic, amid a significant increase in consumer spending and exports.

Eurostat said gross domestic product (GDP) in the 19-nation bloc increased 12.5% ​​in the July-September period compared to the second quarter, the largest increase since data collection began in 1995.

That represented a slight downward revision of estimates in November of 12.6% growth. On an annual basis, the number represents a contraction of 4.3%, slightly up from previous estimates of a decline of 4.4%.

Eurostat data showed that the summer hike was due to domestic consumption and exports, with stores and factories reopening following the general isolation measures.

Consumer spending increased by 14% in the third quarter compared to the second quarter, when it decreased by 12.4%. Exports rose 17.1%, after a drop of 18.9% in the April-June period.

Eurostat reported that household spending contributed 7.3 percentage points to the growth of the euro area and exports by 7.6 points. Government spending contributed 1.1 points.