EU Economy Contracted in the Fourth Quarter

The EU economy contracted in the fourth quarter. The EU economy shrank by 0.5 percent compared to the previous quarter.

European Statistics Office (Eurostat) announced the growth and employment data of the EU and the Eurozone for the fourth quarter of 2020. According to the data released, the seasonally adjusted Gross Domestic Product (GDP) in the 19-member Eurozone decreased by 0.7 percent in the fourth quarter of 2020 compared to the previous quarter. GDP in the Eurozone fell 4.9 percent in the fourth quarter of 2020 compared to the same period of 2019. In the EU, seasonally adjusted GDP decreased by 0.5 percent in the fourth quarter of 2020 compared to the previous quarter, and by 4.6 percent compared to the fourth quarter of 2019. According to these data, due to the impact of the new type of coronavirus (Covid-19) epidemic, the EU economy shrank by 6.2 percent in 2020 and the Eurozone by 6.6 percent. In the fourth quarter, compared to the third quarter, GDP increased by 0.4 percent in Spain and 0.3 percent in Germany, while it decreased 1.4 percent in France and 1.9 percent in Italy. In addition, GDP decreased by 9.1 percent in Spain, 6.6 percent in Italy, 4.9 percent in France and 3.6 percent in Germany in the fourth quarter compared to the same period of the previous year.   Employment Rises in the Fourth Quarter Employment increased by 0.4 percent in the EU in the fourth quarter of 2020 compared to the previous quarter, and increased by 0.3 percent in the Eurozone. In the said period, employment decreased by 1.6 percent in the EU and 1.9 percent in the Eurozone compared to the fourth quarter of 2019.