Eurozone GDP fell in line with forecasts in Q1, employment fell by 0.3%

According to a flash estimate published by Eurostat, in the first quarter of 2021, seasonally adjusted GDP decreased by 0.6% in the euro area and by 0.4% in the EU, compared with the previous quarter. These declines follow falls in the fourth quarter of 2020 (-0.7% in the euro area and -0.5% in the EU) after a strong rebound in the third quarter of 2020 (+12.5% in the euro area and +11.7% in the EU) and the sharpest decreases since the time series started in 1995 observed in the second quarter of 2020 (-11.6% in the euro area and -11.2% in the EU).

Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 1.8% in the euro area and by 1.7% in the EU in the first quarter of 2021, after -4.9% and -4.6% respectively in the previous quarter.

During the first quarter of 2021, GDP in the United States increased by 1.6% compared with the previous quarter (after +1.1% in the fourth quarter of 2020). Compared with the same quarter of the previous year, GDP increased by 0.4% (after -2.4% in the previous quarter).

The number of employed persons decreased by 0.3% in both the euro area and in the EU in the first quarter of 2021, compared with the previous quarter. In the fourth quarter of 2020, employment had increased by 0.4% in both the euro area and the EU.

Compared with the same quarter of the previous year, employment decreased by 2.1% in the euro area and by 1.8% in the EU in the first quarter of 2021, after -1.9% and -1.6% respectively in the fourth quarter of 2020.