Eurozone Economy Grows The Most Since Q1 2015


The Eurozone economy expanded 0.6 percent on quarter in the first three months of 2017, better than a second estimate of 0.5 percent and following a 0.5 percent advance in the previous period. It was the strongest growth rate since the first quarter of 2015, mainly boosted by fixed investment and household consumption. Growth picked up in Germany, Spain and Italy but slowed in France.

From the expenditure side, the positive contribution to GDP came mainly from gross fixed capital formation (0.3 percentage points), household final consumption expenditure (0.2 percentage points) and government spending (0.1 percentage points). Meawnhile, the contribution of both external demand and changes in inventories was neutral.

Gross fixed capital formation jumped by 1.3 percent (3.4 percent in Q4 2016), household consumption increased by 0.3 percent (0.4 percent in Q4) and government spending advanced by 0.4 percent (0.3 percent in Q4). Meanwhile, exports rose 1.2 percent (1.7 percent in Q4) and imports went up at a faster 1.3 percent (3.8 percent in Q4).

From the production side, industry grew by 0.2 percent (0.7 percent in Q4), boosted by manufacturing (0.6 percent from 0.5 percent in Q4). Construction advanced by 1.1 percent (0.2 percent in Q4) and agriculture jumped 2.1 percent (0.1 percent in Q4). Among services, output rose for: trade, transport, accommodation and food service activities (0.6 percent from 0.7 percent in Q4); information and communication (0.7 percent from 0.3 percent in Q4); financial and insurance activities (0.9 percent from -0.3 percent in Q4); real estate activities (0.5 percent from 0.4 percent); professional and support service activities (1.2 percent from 0.6 percent in Q4); and administration and other public services (0.2 percent from 0.4 percent in Q4). 

Among countries for which data is already available, GDP expanded at a faster pace in: Germany (0.6 percent from 0.4 percent in Q4); Spain (0.8 percent from 0.7 percent); Italy (0.4 percent from 0.3 percent); Finland (1.2 percent from 0.6 percent); Belgium (0.6 percent from 0.4 percent); Latvia (1.6 percent from 1.2 percent); Portugal (1 percent from 0.7 percent); and Slovenia (1.5 percent from 1.3 percent). Meanwhile, GDP growth was unchanged in Austria (at 0.6 percent) and Slovakia (at 0.8 percent); and slowed in: France (0.4 percent from 0.5 percent in Q4); Estonia (0.8 percent from 1.9 percent); Cyprus (0.6 percent from 0.7 percent); Lithuania (1.4 percent from 1.5 percent); and the Netherlands (0.4 percent from 0.6 percent). Greek GDP rebounded 0.4 percent after contracting 1.1 percent in the previous period.

Year-on-year, the economy advanced 1.9 percent, also better than preliminary figures of 1.7 percent and following a 1.8 percent expansion in the previous three months. 

Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/8/2017 3:33:12 PM