In the third quarter of 2021, seasonally adjusted GDP increased by 2.2% in the euro area and by 2.1% in the EU compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2021, GDP had also grown by 2.2% in the euro area and 2.1% in the EU.
Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 3.9% in the euro area and by 4.1% in the EU in the third quarter of 2021, after +14.4% in the euro area and +13.8% in the EU in the second quarter of 2021.
During the third quarter of 2021, GDP in the United States increased by 0.5% compared with the previous quarter (after +1.6% in the second quarter of 2021). Compared with the same quarter of the previous year, GDP increased by 4.9% (after +12.2% in the previous quarter).
GDP growth by Member State
Austria (+3.8%) recorded the highest increase of GDP compared to the previous quarter, followed by France (+3.0) and Portugal (+2.9%). Lowest growth rates were observed in Romania and Slovakia (+0.4%), while GDP remained stable in Lithuania (0.0%).
During the third quarter of 2021, household final consumption expenditure increased by 4.1% in the euro area and by 4.0% in the EU (after +3.9% in the euro area and +3.7% in the EU in the previous quarter). Government final consumption expenditure increased by 0.3% in both zones (after +2.1% in the euro area and +1.9% in the EU in the previous quarter). Gross fixed capital formation decreased by 0.9% in the euro area and by 0.6% in the EU (after +1.3% and +1.0% respectively in the euro area and in the EU). Exports increased by 1.2% in the euro area and by 1.0% the EU (after +2.4% and +2.0%). Imports increased by 0.7% in both zones (after +2.9% and +2.8%).
Household final consumption expenditure had strong positive contributions to GDP growth in both the euro area and the EU (+2.1 and +2.0 percentage points – pp, respectively). The contributions from government final expenditure were positive (+0.1 pp in both zones) but negative for gross fixed capital formation (-0.2 pp for the euro area and -0.1 pp for the EU). The contributions from the external balance were positive for both zones, while the contribution from changes in inventories was slightly negative for the euro area and neutral for the EU.
Employment growth in the euro area and EU
The number of employed persons increased by 0.9% in both the euro area and in the EU in the third quarter of 2021, compared with the previous quarter. In the second quarter of 2021, employment had increased by 0.8% in both zones.
Compared with the same quarter of the previous year, employment increased by 2.1% in both the euro area and in the EU in the third quarter of 2021, after +2.0% in both zones in the second quarter of 2021.
Hours worked increased by 2.2% in the euro area and by 1.7% in the EU in the third quarter of 2021, compared with the previous quarter. Compared with the same quarter of the previous year the increases were 3.4% in the euro area and 3.3% in the EU (see annex table on employment in hours worked).
These data provide a picture of labour input consistent with the output and income measure of national accounts.
Employment growth in Member States
In the third quarter of 2021, Irland (+4.0%), Spain (+2.6%), Lithuania (+2.1%), Estonia and Greece (both +1.9%) recorded the highest growth of employment in persons compared with the previous quarter. Employment declined in Latvia ( 2.0%) and remained stable in Finland (0.0%).
Employment levels in the euro area and EU
Based on seasonally adjusted figures, Eurostat estimates that in the third quarter of 2021, 210.0 million people were employed in the EU, of which 161.0 million were in the euro area.
In relation to the COVID-19 pandemic, employment in persons in the euro area still remained 0.3 million below the level of the fourth quarter of 2019, but was 0.1 million above this level in the EU.
Evolution of labour productivity in the euro area and EU
The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous year shows that productivity growth fluctuated around 1% for both zones between 2013 and 2018 before the COVID-19 pandemic caused high volatility in 2020.
In the third quarter of 2021, productivity based on persons increased by 1.8% in the euro area and 1.9% in the EU compared to the same quarter of the previous year.
Based on hours worked, productivity compared to the same quarter of the previous year increased by 0.8% in both the euro area and the EU.
