The euro area recorded a 0.6% decline in GDP as employment fell by 0.3% in Q1 2021 from the previous quarter, according to a Eurostat press release. In the EU, GDP and employment shed 0.4% and 0.3%, respectively.
The declines in output follow similar patterns in Q4 2020 as the euro area’s GDP was down 0.7% while the EU had a 0.5% slump.
In Q2 2020, GDP plunged by 11.6% in the euro area and 11.2% in the EU, the sharpest decline since 1995, before rebounding by 12.5% and 11.7%, respectively, in Q3 2020.
Compared to Q1 2020, GDP shed 1.8% and 1.7% in the euro area and EU respectively in Q1 2021.
The GDP trends in the euro area and EU compares unfavorably to that of the US, which recorded a 1.6% gain in the first quarter.
The fall in employment rate in the euro area and EU is a U-turn from Q4 2020, when it rose by 0.4%.
The employment rate declined by 2.1% in the euro area and 1.8% in the EU compared to the same quarter of 2020.
European stocks are currently declining as the Euro gains. DAX is down 0.16%, EURUSD is up 0.55%.
