EU economic developments and projections
Source: European Parliament
Recent economic developments: According to the latest Eurostat quarterly data, the preliminary flash estimate of the seasonally-adjusted quarterly Gross Domestic Product (GDP) in the euro area (EA) grew by 2.2% in the second quarter of 2021 compared to the previous quarter, while the growth in the EU was 2.1% during the same period. Ireland (+6.3%), Portugal (+4.9%), Latvia (+4.4%) and Estonia (+4.3%) recorded the sharpest increases of GDP compared to the previous quarter, while the strongest declines were observed in Malta (- 0.5%) and Croatia (-0.2%). Annualinflation(Harmonised Index of Consumer Prices or HICP) in the EA has somewhat decreased to 3.0% in August 2021 (down from 2.2% in July), according to the latest flash estimate from Eurostat. Out of all of the components of the HICP, energy is expected to have the highest annual rate increase (1.44 percentage points compared with 1.34 percentage points in July), followed by non-energy industrial goods (0.65 p.p.) food alcohol and tobacco (0.43 p.p.) and services (0.43 p.p.). It should also be noted that HICP levels in different Member States varies strongly, from lowest annual rates observed in Malta (0.4%), Greece (1.2%) and Portugal (1.3%) while the highest annual rates reached 5.0% in Estonia, Lithuania and Poland.
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