Revised data from Eurostat revealed on Tuesday that the eurozone economy contracted less than initially estimated in the second quarter, albeit the rate of decline was the most since the data series began in 1995, as the coronavirus containment measures took their toll.

Gross domestic product (GDP) in the countries that share the euro currency contracted by 11.8 per cent in the second quarter of 2020, compared with the previous quarter, Eurostat said. However, the contraction was less than the 12.1 per cent initially estimated. GDP had contracted by 3.7 per cent in the first quarter. Compared with the same period of 2019, seasonally-adjusted GDP decreased by 14.7 per cent.

Meanwhile, German exports continued to recover from the virus-related slump in July but still lagged far behind pre-pandemic levels, official data showed on Tuesday.

Exports climbed by 4.7 per cent, slower than the 14.9 per cent increase seen in June. This was also weaker than the five per cent increase expected by economists.

The July data marked the third consecutive month-on-month jump in German exports following steep declines in March and April when coronavirus lockdowns battered trade and disrupted supply chains around the world. Underlining the tough recovery ahead, exports were still 11 per cent lower in July than in the same month a year earlier, while imports were down 11.3 per cent.

Finally, in China, consumer inflation eased in August alongside slowing growth in food prices.

Consumer price inflation in the world’s second largest economy slowed to 2.4 per cent in August from 2.7 per cent in July, government data revealed on Wednesday. The rate came in line with expectations.

On a monthly basis, consumer prices went up by 0.4 per cent. Driven by slower growth in pork prices, food price inflation eased to 11.2 per cent annually. Pork prices rose by 52.6 per cent from last year, following an 85.7 per cent rise in July. Core inflation, which excludes food and energy prices, held steady at 0.5 per cent in August.

This report was compiled by Bank of Valletta for general information purposes only.