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EU GDP falls less than expected in the final quarter of 2020

The European Union’s economy contracted less than forecasted in the fourth quarter as bloc’s large economies Germany and Spain remained resilient and cushioned the impact of pandemic-induced new lockdowns.

Germany ticked up 0.1% in Q4, Spanish economy grew by 0.4% while the second and third largest bloc’s economies France and Italy, contributed negatively and pulled down the overall result, as France declined by 1.3% and Italy by 2%.

According to preliminary flash estimate, EU’s annualized gross domestic product declined by 5.1% in Q4, below expected 5.4% drop, following a sharp rebound in Q3 when the EU eased restrictions on travel and leisure after the first wave of coronavirus pandemic.

In comparison to the first estimation of annual growth for 2020, based on seasonally adjusted quarterly data, GDP fell by 6.8% in the union of countries sharing the single currency and 6.4% in the 27-nation European Union.