Eurozone Q2 GDP Growth Confirmed at 0.2%


The Eurozone quarterly economic growth was confirmed at 0.2 percent in the second quarter of 2019, slowing from a 0.4 percent expansion in the previous period. Household consumption and fixed investment supported the expansion while net trade contributed negatively to growth and change in inventories was negligible.

From the expenditure side, the largest positive contribution to the GDP growth came from household final consumption expenditure (0.1 percentage points) and gross fixed capital formation (0.1 percentage points); while net trade substracted 0.1 percentage points as exports made no contribution and imports contributed negatively (-0.1 percentage points); and change in inventories was negligible.

Household consumption increased 0.2 percent in the second quarter of the year (vs 0.4 percent in Q1) and government spending went up 0.3 percenty (vs 0.4 percent in Q1). Also, fixed investment advanced 0.5 percent, following a 0.2 percent expansion in the previous period. Exports were flat (vs 0.9 percent in Q1) while imports rose 0.2 percent (vs 0.4 percent in Q1).

From the production side, services activity was the main driver of growth led by trade, transport, accommodation and food service activities (0.1 percent vs 1.0 percent); administration and other public services (0.3 percent vs 0.1 percent); professional and support service activities (0.6 percent vs 0.2 percent); real estate activities (0.4 percent, the same as in Q1); information and communication (0.5 percent vs 1.3 percent); financial and insurance activities (0.7 percent vs a flat reading); and arts, entertainment and other services (0.1 percent vs 0.6 percent). Also, construction advanced 0.1 percent, after a 1.5 percent gain in Q1. Meanwhile, industry output shrank 0.7 percent (vs a flat reading in Q1), mostly due to manufacturing production (-0.8 percent vs -0.1 percent in Q1).

Among the bloc's largest economies, Germany's GDP contracted 0.1 percent in Q2, after expanding 0.4 percent in the first three months of the year while Italian economy stagnated, following a 0.1 percent growth. In addition, Spain's economy grew 0.5 percent, slowing from a 0.7 percent expansion in Q1; while France's gross domestic growth was steady at 0.3 percent. 

Compared with the same quarter of the previous year, the Euro Area economy expanded 1.2 percent in the three months to June, easing from an upwardly revised 1.3 percent growth in Q1.

Considering the European Union as a whole, the economy advanced 0.2 percent (vs 0.5 percent in Q1); and grew 1.4 percent year-on-year (vs 1.6 percent in Q1).

Eurozone Q2 GDP Growth Confirmed at 0.2%


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
9/6/2019 9:31:13 AM