The euro area economy contracted less than expected in the last quarter

The euro area economy contracted less in the fourth quarter, as preliminary data suggested. In the three months to the end of December 2020, the Euroregion's gross domestic product decreased by 0.6% quarter on quarter and not by 0.7%, as indicated by the quick estimate. This was shown on Tuesday by the updated data of the European statistical office Eurostat. According to updated data, the gross domestic product (GDP) of the Euroregion decreased by 0.6% quarter on quarter in the three months to the end of December 2020, and not by 0.7%, as indicated by the flash estimate. Across the European Union as a whole, GDP fell less quarter on quarter, by 0.4% instead of 0.5% in the first estimate in early February. These declines follow a strong recovery in the third quarter of 2020, when euro area GDP grew by 12.4% quarter on quarter and the EU by 11.5% after their sharpest fall since the start of these statistics in 1995. In particular, the euro-paying region's economy contracted by -11.7% between April and June and by -11.4% in the Union as a whole compared to the previous three months. In a year-on-year comparison, the seasonally adjusted GDP of the Euroregion decreased by 5% in the period October-December 2020 after adjustment, instead of by 5.1% with a quick estimate. The EU economy contracted by 4.8% year on year in the fourth quarter, in line with preliminary data. The pace of decline accelerated in both blocs, from -4.3% in the third quarter in the euro area and from -4.2% in the EU in July-September. By way of illustration, United States GDP grew by 1% quarter on quarter in the fourth quarter of 2020 (after rising by 7.5% in the third quarter) and declined by 2.5% year on year (-2.8% in the previous quarter). Eurostat also said that employment in both units increased by 0.3% quarter on quarter in the fourth quarter, despite the resumption of blockages to halt the spread of the new coronavirus. However, its growth rate slowed down as employment rose by 1% in the euro area and by 0.9% in the EU in the third quarter. Year-on-year, employment in the euro area fell by 2% in the last three months of 2020 (after declining by 2.3% in the third quarter) and in the EU by 1.7% (-2.1% in the third quarter of 2020). For the whole of last year, employment fell by 1.8% in the euro area and by 1.6% in the EU.