Following the easing of Covid-19 control measures, the euro area economy recovered at the fastest pace on record in the third quarter driven by household spending, investment and exports, revised data from Eurostat showed on Tuesday.
Gross domestic product grew sharply by 12.5 percent sequentially, reversing the 11.7 percent fall in the second quarter. The growth rate was revised down marginally from 12.6 percent.
Nonetheless, this was the biggest expansion observed since time series began in 1995.
Year-on-year, GDP was down 4.3 percent versus second quarter's 14.7 percent decline. According to initial estimate, GDP had fallen 4.4 percent in the third quarter.
The expenditure-side breakdown of GDP showed that household spending surged 14 percent after falling 12.4 percent a quarter ago. At the same time, government spending rose moderately by 4.8 percent, reversing a 2.2 percent drop.
Gross fixed capital formation advanced notably by 13.4 percent, in contrast to the 16 percent decrease in the preceding period.
Similarly, exports jumped 17.1 percent, following a sharp 18.9 percent fall in the second quarter and imports grew 12.3 percent after an 18.2 percent decline.
Further, data showed that employment increased at the fastest pace on record in the third quarter.
However, the statistical office revised down the sequential growth in employment to 1 percent from 0.9 percent. On a yearly basis, employment decreased 2.3 percent instead of the initial estimate of -2 percent.
The EU27 economy grew 11.5 percent sequentially in the third quarter but shrank 4.2 percent from the same period last year. According to previous estimate, GDP was up 11.6 percent on quarter and down 4.3 percent annually.