EU: Annual GDP in euro area contracts by 4.3% in Q3 vs. 4.4% expected

• Euro area GDP grew at a strong pace in third quarter.
• EUR/USD pair trades with modest gains above 1.2100.

The seasonally adjusted Gross Domestic Product (GDP) expanded by 12.5% in the third quarter in the euro area and 11.5% in the EU, the data published by the Eurostat showed on Tuesday. 

On a yearly basis, the euro area GDP contracted by 4.3% in Q3 and came in slightly better than the market expectation for a decline of 4.4%.

"France (+18.7%), Spain (+16.7%) and Italy (+15.9%) recorded the sharpest increases of GDP compared to the previous quarter," the Eurostat further noted in its press release. "These countries were also among the highest decreases in the second quarter."

Market reaction

The shared currency showed no immediate reaction to these figures as they were largely in line with the flash estimates. As of writing, the EUR/USD pair was up 0.12% on the day at 1.2122.