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Euro-Area Economy Shrank Less Than Forecast at End of 2020

  • Output fell 0.7% after unexpected growth in Spain, Germany
  • Italian post 2% contraction amid strict pandemic lockdowns
Italian Economy as Country Battles Battered Public Finances
Photographer: Alessia Pierdomenico/Bloomberg
Updated on

The euro-area economy shrank less than expected at the end of last year, though it remains on the verge of a double-dip recession amid a slow rollout of coronavirus vaccines.

Gross domestic product declined 0.7% in the fourth quarter, compared with estimates for a 0.9% drop. Germany and Spain both posted surprise economic expansions in reports last week. Italy reported a contraction of 2% earlier on Tuesday.