Euro Area Economy Expands 0.2% in Q2
The Eurozone GDP growth was confirmed at 0.2 percent in the third quarter of 2014, up from a 0.1 percent expansion reported from April to June. Household and government expenditure kept the economy growing while investments and external trade contributed negatively to the expansion.
12/5/2014 10:30:08 AM
During the third quarter of 2014, household final consumption expenditure rose by 0.5% (after +0.3% in the previous quarter). Gross fixed capital formation decreased by 0.3% (after -1.2%). Exports rose by 0.8% (after +1.4%) and imports increased by 1.2% (after +1.3%).
Household final consumption expenditure had a positive contribution to GDP growth (+0.3 percentage points), followed by government expenditure (+0.1 pp). Gross fixed capital formation had a negative contribution to GDP growth (-0.1pp). The contribution of the external balance was negative with exports contributing 0.3 percentage point to the growth and imports subtracting 0.5 percentage point. The contribution of changes in inventories was neutral.
Among Euro Area member states, Greece recorded the highest growth rate (0.7 percent), followed by Slovakia (0.6 percent), Spain (0.5 percent), Latvia (0.4 percent) and France (0.3 percent). Belgium, Portugal, the Netherlands, Estonia and Finland expanded 0.2 percent each and Germany advanced 0.1 percent. Austria showed no growth and Italy and Cyprus contracted by 0.1 percent and 0.4 percent, respectively.
Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.8%.