Euro Area's economy expanded by 3.7% y/y in Q3 2021

The Euro Area's economy expanded by 3.7% y/y in Q3 2021 following an unusually large rise of 14.2% y/y in Q2 that was exaggerated by the low base caused by the pandemic restrictions. GDP growth in Germany was 2.5% y/y in Q3, 2.7% y/y in Spain, 3.3% y/y in France and 3.8% y/y in Italy.

On a quarterly basis, real GDP in the Euro Area increased by a seasonally- and calendar-adjusted 2.2% q/q following a rise of 2.1% q/q in Q2, according to the preliminary (flash) estimate from Eurostat.  

The International Monetary Fund (IMF) has revised upwards its forecast for economic growth in the Eurozone this year. According to its World Economic Outlook, published in October 2021, real GDP in the Eurozone will grow by 5% y/y in 2021, which is 40bp higher than the July 2021 forecast, following a 6.3% contraction in 2020, while the projection for 4.3% y/y real GDP growth in 2022 remains unchanged. Real GDP growth forecasts for Germany and Spain were revised downwards by 50bp to 3.1% y/y and 5.7% y/y respectively in 2021. France’s real GDP growth was revised upwards by 50bp to 6.3% y/y, while Italy’s growth was revised upwards by 90bp to 5.8% y/y.

Read more in the quarterly report Euro Area Economy in a Snapshot - Q4 2021