Euro Area Economy Contraction Confirmed at 0.2% QoQ in Q1


GDP fell by 0.2 percent in the Euro Area during the first quarter of 2013, compared with the previous quarter, according to second estimates published by Eurostat. In the fourth quarter of 2012, growth rate was -0.6 percent. The smaller contraction in Q1 was mainly due to an improvement in inventories and household demand, which, unlike in the previous quarter, did not weigh down the overall result.

During the first quarter of 2013, household final consumption expenditure rose by 0.1 percent in both the Euro Area and the EU27 (after -0.6 percent and -0.3 percent respectively in the previous quarter). Gross fixed capital formation dropped by 1.6 percent in the Euro Area and by 1.4 percent in the EU27 (after -1.4 percent and -1.2 percent). Exports decreased by 0.8 percent in the Euro Area after -0.9 percent and imports declined by 1.1 percent in after -1.2 percent. 

In both the Euro Area and the EU27, gross fixed capital formation contributed negatively to GDP growth (-0.3 percentage points and -0.2 pp respectively), while the contributions of household final consumption expenditure and change in inventories were neutral in the euro area (0.0 pp each) and slightly positive in the EU27 (+0.1 pp each).

The annual growth rate was revised down to -1.1 percent in the January to March period from an estimate of -1.0 percent. In Q4 of 2012, the GDP shrank 1.0 percent year-on-year.

Eurostat | Nuno Fontes | nuno@tradingeconomics.com
6/5/2013 10:29:27 AM