Euro Area Second Estimate For GDP Growth Confirms 0.6 Percent Contraction in Q4


GDP fell by 0.6 percent in the euro area and by 0.5 percent in the EU27 during the fourth quarter of 2012, compared with the previous quarter, according to second estimates published by Eurostat. In the third quarter of 2012, growth rates were -0.1 percent and +0.1 percent respectively.

Compared with the same quarter of the previous year, GDP fell by 0.9 percent in the euro area and by 0.6 percent in the EU27 in the fourth quarter of 2012, after -0.6 percent and -0.4 percent respectively in the previous quarter. Over the whole year 2012, GDP fell by 0.6 percent in the euro area and by 0.3 percent in the EU27.

Among Member States for which data are available for the fourth quarter of 2012, Latvia (+1.3 percent), Estonia (+0.9 percent) and Lithuania (+0.7 percent) recorded the highest growth compared with the previous quarter, and Portugal (-1.8 percent), Cyprus and Slovenia (both -1.0 percent) the largest decreases.
 
During the fourth quarter of 2012, household final consumption expenditure fell by 0.4 percent in the euro area and by 0.3 percent in the EU27 (after -0.1 percent in both zones in the previous quarter). Gross fixed capital formation dropped by 1.1 percent in the euro area and by 0.9 percent in the EU27 (after -0.8 percent and -0.7 percent). Exports decreased by 0.9 percent in both zones (after +1.0 percent and +0.9 percent). Imports declined by 0.9 percent in the euro area and by 0.8 percent in the EU27 (after +0.1 percent and 0.0 percent). 
 
In both the euro area and the EU27, household final consumption expenditure and gross fixed capital formation contributed negatively to GDP growth (-0.2 percentage points each in both zones), as did changes in inventories (-0.1 pp in the euro area and -0.2 pp in the EU27).
 

Eurostat | Nuno Fontes | nuno@tradingeconomics.com
3/6/2013 10:08:29 AM