Economics

Euro-Area Growth Surged by Record Before New Setback: GDP Update

  • Virus restrictions could push euro area into another recession
  • ECB has signaled it will expand stimulus again in December

The government is reactivating a solidarity fund to help companies weather the crisis.

Photographer: Nathan Laine/Bloomberg
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The euro-area economy surged by a record in the third quarter in a rebound that’s now being derailed by an intensifying pandemic and new government restrictions on businesses across the region.

The bloc grew 12.7%, well ahead of the 9.6% pace forecast by economists. France, Italy and Spain all recorded double-digit increases, and GDP in Germany jumped 8.2%. Those bouncebacks follow huge slumps in the previous three months, when activity came to a near halt amid lockdowns to contain the coronavirus.