Positive Initial Q3 GDP Estimates Across EU

Positive Initial Q3 GDP Estimates Across EU

Friday 29th October 2021 – 10:22 (BST)

Initial estimates by the Eurostat have indicated that the eurozone economy continued to grow over the third quarter of 2021, moving further away from its recent technical recession and immediately strengthening the euro.

The readings showed a 2.2% growth across the region, representing a yearly productivity increase of 3.7% and outperforming the market consensus of 2%. Both France and Germanys output benefitted from a sped-up vaccination drive, whilst overall productivity remained strong across the continent.

Annual inflation also continued to push higher within the region over October, reaching 4.1% and marked its highest reading since July 2008. The main contributors during the month were energy, services and non-energy industrial goods.

European Central Bank president Christine Lagarde aired the banks concerns on escalating prices during an ECB press conference yesterday, and the potential impact on consumer spending. Positions are now being taken on which central bank will likely move interest rates first in an attempt to cool rising inflation.

Elsewhere, figures released yesterday showed a bearish Q3 GDP reading out of the US as its economy continues to be hobbled by coronavirus-related issues. Its economy grew only 2% between July and September as a wave of Covid-19 cases, supply chain bottlenecks, surging inflation and ebbing federal financial lifelines downshifted the pace of the nation’s economic recovery.