Eurozone Q4 GDP Growth Confirmed at 0.6%


The Eurozone economy expanded 0.6 percent on quarter in the three months to December of 2017, in line with the second estimate and following a 0.7 percent advance in the previous period.

From the expenditure side, positive contributions to GDP growth came from net trade (0.4 percentage points), gross fixed capital formation (0.2 percentage points), household final consumption expenditure (0.1 percentage points) and government spending (0.1 percentage points). By contrast, changes in inventories subtracted 0.2 percentage points to GDP growth.

Exports rose 1.9 percent, after a 1.6 percent increase in the third quarter, while imports went up at a slower 1.1 percent, compared with a 0.6 percent gain in Q3. In addition, fixed investment rebounded sharply by 0.9 percent (-0.2 percent in Q3). On the other hand, household consumption growth eased to 0.2 percent from 0.3 percent in the third quarter, and government spending increased at a softer 0.3 percent, compared to 0.4 percent in Q3. 

From the production side, industry grew by 1.2 percent (1.5 percent in Q3), boosted by manufacturing (1.3 percent vs 1.7 percent in Q3). Also, construction advanced by 1.1 percent (vs 0.4 percent in Q3). Among services, output rose for: trade, transport, accommodation and food service activities (0.6 percent vs 0.4 percent); information and communication (0.7 percent vs 1.3 percent); financial and insurance activities (0.2 percent vs 0.1 percent); real estate activities (0.3 percent vs 0.5 percent); professional and support service activities (0.8 percent, the same as in Q3); administration and other public services (0.3 percent vs 0.5 percent); and arts, entertainment and other services (0.2 percent vs 0.7 percent).

Among countries for which data is already available, the GDP expanded at a softer pace in Germany (0.6 percent vs 0.7 percent in Q3), Italy (0.3 percent vs 0.4 percent), Greece (0.1 percent vs 0.4 percent), and Latvia (0.3 percent vs 1.5 percent). Meanwhile, GDP growth was unchanged in Spain (at 0.7 percent) and Austria (at 0.8 percent); and picked up in France (0.6 percent vs 0.5 percent), the Netherlands (0.8 percent vs 0.4 percent), Finland (0.7 percent vs 0.2 percent), Belgium (0.5 percent vs 0.2 percent), Portugal (0.7 percent vs 0.6 percent), Slovakia (0.9 percent vs 0.8 percent), Slovenia (2 percent vs 1.2 percent), Lithuania (1.4 percent vs 0.5 percent), Cyprus (1.1 percent vs 0.9 percent) and Estonia (2.2 percent vs 0.4 percent).

Compared with the same quarter of the previous year, the Eurozone economy expanded 2.7 percent, unrevised from the preliminary estimate and the same pace as in the previous period. Over the whole year 2017, GDP growth stood at 2.3 percent, slightly below earlier estimates of 2.5 percent and compared to 1.8 percent in 2016.

Considering the European Union, the GDP growth eased to 0.6 percent quarter-on-quarter (vs 0.7 percent in Q3) and to 2.6 percent year-on-year (vs 2.7 percent in Q3). For 2017 full year, the economy expanded by 2.4 percent (vs 2 percent in 2016).


Eurozone Q4 GDP Growth Confirmed at 0.6%


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
3/7/2018 11:27:33 AM