Latest data released by Eurostat - 2 February 2021
- Prior (Q3) +12.5%; revised to +12.4%
- Q4 GDP -5.1% vs -5.3% y/y expected
- Prior (Q3) -4.3%
The initial reading is a little better than estimates but this still shows that the euro area economy shrank in the final quarter of last year amid tighter virus restrictions. Similar conditions are playing out so far in Q1 and that sets up a likelihood of a double-dip recession to follow, although vaccine optimism is largely overshadowing that for now.
