Euro Area Economy Stalls in Q2


Euro Area seasonally adjusted GDP stagnated in the April to June period, according to second estimates released by Eurostat and matching the advance figures. A rise in household consumption was not enough to offset falling investment and inventories. In the EU 28 the GDP rose by 0.2 percent.

During the second quarter of 2014, household final consumption expenditure rose by 0.3 percent in the euro area and by 0.4 percent in the EU28 (after +0.2 percent and +0.4 percent respectively in the previous quarter). Gross fixed capital formation decreased by 0.3 percent in the euro area and by 0.1 percent in the EU28 (after +0.2 percent and +0.5 percent). Exports rose by 0.5 percent in the euro area and by 0.3 percent in the EU28 (after +0.1 percent and +0.5 percent). Imports increased by 0.3 percent in the euro area and by 0.4 percent in the EU28 (after +0.8 percent and +1.2 percent). 

Household final consumption expenditure had a positive contribution to GDP growth (+0.2 percentage points) in both the euro area and the EU28. Gross fixed capital formation had a negative contribution to GDP growth in the euro area (-0.1pp) and had no influence to the growth of GDP in the EU28 (0.0pp). The contribution of the external balance to GDP growth was positive (+0.1pp) in the euro area and with no influence (0.0 pp) in the EU28. The contribution of changes in inventories was negative (-0.2 pp in the euro area and -0.1pp in the EU28).

Among Member States for which data are available for the second quarter of 2014, Malta (+1.3 percent), Latvia (+1.0 percent), Lithuania, Hungary and the United Kingdom (all +0.8 percent) recorded the highest growth compared with the previous quarter. Romania (-1.0% percent), Denmark and Cyprus (both -0.3 percent), Germany and Italy (both -0.2 percent) registered decreases.

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.7 percent in the euro area and by 1.2 percent in the EU28 in the second quarter of 2014, after +1.0 percent and +1.4 percent respectively in the previous quarter.

Euro Area Economy Stalls in Q2


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
9/5/2014 10:17:21 AM