Eurozone GDP grows 2% in Q2 as Covid restrictions ease

The eurozone economy grew 2% in the second quarter as Covid restrictions eased, according to data released on Tuesday by Eurostat.

This followed a 0.3% contraction in the first quarter and was in line with analysts’ expectations.

Compared with the same quarter of the previous year, seasonally-adjusted GDP in the bloc increased by 13.6%.

Figures released by Eurostat also showed that eurozone employment grew 0.5% in the April to June period, which was an improvement on the 0.2% decline in the previous quarter and in line with expectations.

Jessica Hinds, Europe economist at Capital Economics, said the strong growth in the eurozone GDP in Q2 is likely to be repeated in the third quarter despite the spread of the Delta variant, and should bring the economy back towards its pre-virus size in the coming months.

"But the southern economies continue to lag, with travel restrictions still holding back their tourism sectors," she added.