Latest data released by Eurostat - 30 October 2020
- Prior -11.8%
- GDP -4.3% vs -7.0% y/y expected
- Prior -14.7%
As predicated by the individual country readings earlier today, the rebound in the Eurozone economy was much stronger than estimated in Q3. That is a positive takeaway after the plunge in Q2 but amid the resurgence in the virus in recent weeks, optimism is fleeting.
The outlook for Q4 looks grim amid tighter virus restrictions and that takes away a lot of the "feel-good" factor from the last quarter. If anything else, it reaffirms the narrative that the economy cannot quite go back to normal while keeping the health crisis at bay.
Something has got to give and that means economic confidence/morale may be even harder to recover this time around should restrictions be more prolonged.