Eurozone GDP soars

​GDP came in at 2% quarter-on-quarter with most large economies coming in above expectations, except Germany. The Delta variant and supply chain issues are potential roadblocks to the economic recovery but at this time, it is continuing at a good pace into the third quarter.

​The GDP number confirms that the Eurozone ecomonic recovery is well underway, however, it hasn't been an easy ride. Supply chain issues are still impacting certain areas of the economy and the vaccine rollout hasn't progressed as quickly as expected, however, demand has been strong.

Those supply chain issues really impacted the German economy more than other countries and this was largely the result of it's large car industry, which has been particularly hard hit. Countries that are further behind pre-pandemic levels like Italy and Spain saw impressive growth rates of 2.7% and 2.8%, respectively.

Looking forward to the third quarter, we can see that the Delata variant is causing some issues with the possibilitiy of more restrictions being enforced. In addition, supply chain problems continue to impact manufacturing production and these factors could cause some headwinds. Having said that, the economic recovery is expected to continue across the Eurozone, with tailwinds provided by strong demand both domenstically and internationally.