Euro Area GDP Growth Slows in Q1


The Euro Area economy advanced 0.2 percent quarter-on-quarter in the first three months of 2014, slowing from a revised 0.3 percent expansion in the previous quarter and matching initial estimates. Growth was mainly driven by household consumption, while exports and investment slowed sharply.

In the EU28, the GDP increased 0.3 percent. 

Household final consumption expenditure had a positive contribution to GDP growth (+0.1 percentage points) both in the euro area and the EU 28, as did gross fixed capital formation (+0.1pp in both zones). The contribution of the external balance to GDP growth was negative (-0.2pp in the euro area and -0.3pp in the EU28). The contribution of changes in inventories was positive (+0.2pp in the euro area and +0.3pp in the EU28).

Among Member States for which data are available for the first quarter of 2014, Hungary and Poland (both +1.1 percent), Denmark (+0.9 percent), Germany and the United Kingdom (both +0.8 percent) recorded the highest growth compared with the previous quarter. The Netherlands (-1.4 percent), Estonia (-1.2 percent), Cyprus and Portugal (both -0.7 percent) registered the largest decreases.  

During the first quarter of 2014, household final consumption expenditure rose by 0.1 percent in the euro area and by 0.2 percent in the EU28 (after 0.0 percent and +0.1 percent respectively in the previous quarter). Gross fixed capital formation increased by 0.3 percent in the euro area and by 0.6 percent in the EU28 (after +0.9 percent and +1.0 percent). Exports rose by 0.3 percent in the euro area and by 0.4 percent in the EU28 (after +1.4 percent and +1.5 percent). Imports increased by 0.8 percent in the euro area and by 1.1 percent in the EU28 (after +0.7 percent and +0.5 percent). 

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.9 percent in the euro area and by 1.4 percent in the EU28 in the first quarter of 2014, after +0.5 percent and +1.0 percent respectively in the previous quarter.

Euro Area GDP Growth Slows in Q1


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
6/4/2014 10:23:53 AM