Sunday, June 16, 2024

GDP up by 0.3% and employment up by 0.3% in the euro area

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Announcement

Following recommendations for a harmonised European revision policy for national accounts and balance of payments, EU countries will carry out a benchmark revision of their national accounts estimates in 2024. The purpose of this benchmark revision is to implement changes introduced by the amended ESA 2010 regulation, and to incorporate new data sources and other methodological improvements. Most of the revised quarterly and annual country data are expected to be released by Eurostat between June and October 2024, and will be progressively integrated in European estimates. The impact of these revisions is expected to be limited, but still noticeable for some European aggregates and more pronounced for certain Member States. For further details, please consult the available documentation on Eurostat’s website.

GDP growth in the euro area and the EU

In the first quarter of 2024, seasonally adjusted GDP increased by 0.3% in both the euro area and the EU, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2023, GDP had declined by 0.1% in the euro area and had remained stable in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.5% in the EU in the first quarter of 2024, after +0.2% in the euro area and +0.3% in the EU in the previous quarter.

GDP growth rates over the same quarter of the previous year

During the first quarter of 2024, GDP in the United States increased by 0.3% compared to the previous quarter (after +0.8% in the fourth quarter of 2023). Compared with the same quarter of the previous year, GDP increased by 2.9% (after +3.1% in the previous quarter).

GDP growth by Member State

Malta (+1.3%) recorded the highest increase of GDP compared to the previous quarter, followed by Cyprus (+1.2%) and Croatia (+1.0%). Decreases were observed in Denmark (-1.8%), Estonia (-0.5%) and the Netherlands (‑0.1%).

GDP growth rates in the first quarter of 2024

GDP components and contributions to growth

GDP components evolved in the first quarter of 2024 as follows:

  • government final consumption expenditure was stable in the euro area and increased by 0.1 in the EU (after +0.6% in the euro area and +0.5% in the EU in the previous quarter),

  • gross fixed capital formation decreased by 1.5% in both the euro area and the EU (after +0.8% and +0.7% respectively),

The contribution to GDP growth from:

  • government final expenditure was negligible for both zones (+0.0 pp for both),

  • gross fixed capital formation was negative for both the euro area and the EU (-0.3 pp for both),

  • changes in inventories was negative for both euro area (-0.3 pp) and the EU (-0.1 pp), and

  • exports minus imports was positive for both the euro area (+0.9 pp) and the EU (+0.6 pp).