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By Xavier Fontdegloria

The eurozone economy expanded at a strong pace in the third quarter, almost fully recovering the gap from the Covid-19 induced recession, but growth is expected to slow sharply in the months ahead as the boost from the reopening fades.

The eurozone’s gross domestic product expanded by 2.2% from July to September compared with the prior three-month period, according to the European Union’s statistics agency, and confirming the first estimate released on Oct. 29.

In the second quarter of the year, the region’s economy had grown by 2.1%.

On year, the economy expanded by 3.7%, according to the second estimate for the period, and also unchanged from the first one, data from Eurostat showed.

Eurostat added that the number of employed citizens increased by 0.9% in the third quarter compared with the previous one, following a 0.7% rise from April to June.

Economists expect the eurozone’s economic growth to decelerate in the last quarter of 2021 as the effect from the pandemic-related reopening fades, Covid-19 infection numbers increase in several member states, and widespread supply-chain strains hit the region’s industrial sector.

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