Europe’s GDP Growth Revised Up To 2.2% As Consumer Spending Strengthens

The European economy grew by more than initially forecast in the second quarter as consumer spending rebounded after two consecutive quarters of declines during pandemic lockdowns.

Statistical agency Eurostat said that gross domestic product (GDP) in the 19 countries that comprise the Euro Zone increased by 2.2% in the second quarter from the previous first quarter and 14.3% from the second quarter of 2020.

Those figures were upwardly revised from earlier estimates of 2.0% quarter-over-quarter and 13.6% annual growth in the second quarter.

The economies of every Euro Zone country expanded except Malta. However, GDP volumes in the single currency bloc were still 2.5% below their pre-COVID-19 levels. The U.S. is already 0.8% higher than its level at the end of 2019, before the pandemic.

Eurostat said household consumption in the April-June period added 1.9 percentage points to the overall quarterly figure, with government spending and investment adding 0.3 and 0.2 points.

A draw down of inventories pulled 0.2 percentage points off the overall GDP figure, while the net impact of trade was zero. Eurostat also said that employment in Europe rose 0.7% quarter-on-quarter in the second quarter and by 1.8% year-over-year.