Euro Area GDP Growth Revised Up to 1-Year High of 0.6%


The Eurozone economy advanced 0.6 percent on quarter in the first three months of 2016, higher than an upwardly revised 0.4 percent expansion in the previous quarter and the strongest performance in a year, final figures showed. Growth was mainly driven by household spending and private investment.

The first estimate showed the common currency zone grew 0.6 percent but the first revision had lowered growth to 0.5 percent. 

Household final consumption expenditure had a positive contribution to growth (+0.3 and percentage points), as did gross fixed capital formation (+0.2 pp). The contribution of the external balance was negative, while the one of changes in inventories was positive.

During the first quarter of 2016, household final consumption expenditure rose by 0.6 percent, accelerating from a 0.3 percent growth in the previous quarter while gross fixed capital formation increased at a slower 0.8 percent (1.4 percent in the previous period). In addition, growth for both exports (0.4 percent from 0.7 percent) and imports (0.7 percent from 1.4 percent in the previous quarter) eased. 

Among countries for which data is available, Germany (0.7 percent from 0.3 percent in Q4 2015), France (0.6 percent from 0.4 percent in Q4 2015), Italy (0.3 percent from 0.02 percent in Q4 2015), Cyprus (0.9 percent from 0.4 percent in Q4 2015), Lithuania (0.8 percent from 0.5 percent in Q4 2015), Austria (0.8 percent from 0.3 percent in Q4 2015), Slovakia (0.8 percent from 1 percent in Q4 2015), Finland (0.6 percent from 0.4 percent in Q4 2015), the Netherlands (0.5 percent from 0.3 percent in Q4 2015) and Latvia (0.1 percent from -0.4 percent in Q4 2015) grew at a faster pace. Spanish GDP growth remained robust at 0.8 percent and the Portuguese economy expanded at the same pace as in the previous quarter (0.2 percent).

In contrast, Belgium (0.2 percent from 0.5 percent in Q4 2015) and Estonia (0 percent from 0.9 percent in Q4 2015) slowed while Greece came back to contraction (-0.5 percent from 0.1 percent in Q4 2015). 

Year-on-year, the Euro Area economy expanded 1.7 percent, the same as in the last three months of 2016 and also revised up from a 1.5 percent growth in the second estimate.

Considering the European Union, the GDP grew 0.5 percent on quarter and 1.8 percent on the year. Hungary (-0.8 percent) and Poland (-0.1 percent) showed contractions.

Euro Area GDP Growth Revised Up to 1-Year High of 0.6%


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
6/7/2016 10:29:56 AM