Eurozone Economic Outlook: Eurozone GDP starts to recover (September 2020)

In the euro area, GDP contracted by 11.8% in Q2 2020 compared to the previous quarter. The drop in economic activity was driven by all demand components, which recorded the largest negative contributions in recent years: consumption expenditure decreased by 12.4% and gross fixed capital formation by 17% compared to the previous quarter. In Germany, GDP fell by 9.7%. Italy and France had steeper declines (-12.8% and –13.8% respectively) while in Spain the fall was even stronger (-18.5%). The quarterly national accounts data, however, hid sharp fluctuations of monthly indicators such as retail sales and industrial production. The steep decline in March and April was followed by a rebound in May and June.