Eurozone Q2 GDP Growth Rate Confirmed at 0.6%


The Eurozone economy expanded 0.6 percent on quarter in the three months to June of 2017, in line with the second estimate and following a 0.5 percent advance in the previous period. Growth was mainly boosted by household consumption, fixed investment and exports. Among Eurozone's largest economies, GDP growth picked up in Spain; was unchanged in France and Italy; and slowed in Germany.

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

Household consumption went up 0.5 percent (0.4 percent in Q1), gross fixed capital formation jumped by 0.9 percent (-0.3 percent in Q1) and government spending advanced by 0.5 percent (0.2 percent in Q1). In addition, exports rose 1.1 percent (1.3 percent in Q1) and imports went up at a slower 0.9 percent (0.4 percent in Q1).

From the production side, industry grew by 1.1 percent (-0.1 percent in Q1), boosted by manufacturing (1 percent from 0.2 percent in Q1). Also, construction advanced by 1 percent (1.5 percent in Q1). Among services, output rose for: trade, transport, accommodation and food service activities (0.7 percent from 0.9 percent in Q1); information and communication (1 percent from 1.1 percent in Q1); financial and insurance activities (0.1 percent after showing no growth in Q1); real estate activities (0.3 percent from 0.5 percent in Q1); professional and support service activities (0.8 percent from 1.3 percent in Q1); administration and other public services (0.2 percent, the same as in Q1); and arts, entertainment and other services (0.3 percent, the same as in Q1). By contrast, agriculture, forestry and fishing contracted 0.9 percent after an increase of 1.6 percent in Q1.

Among countries for which data is already available, GDP expanded at a faster pace in Spain (0.9 percent from 0.8 percent in Q1), the Netherlands (1.5 percent from 0.6 percent), Austria (0.9 percent from 0.7 percent) and Estonia (1.3 percent from 1.2 percent). Meanwhile, GDP growth was unchanged in France (at 0.5 percent), Italy (at 0.4 percent), Greece (at 0.5 percent) and Slovakia (at 0.8 percent); and slowed in Germany (0.6 percent from 0.7 percent), Belgium (0.4 percent from 0.6 percent), Cyprus (0.9 percent from 1 percent), Finland (0.4 percent from 1.2 percent), Latvia (1.2 percent from 1.7 percent), Lithuania (0.6 percent from 1.3 percent), Portugal (0.3 percent from 1 percent) and Slovenia (1.1 percent from 1.2 percent). 

Year-on-year, the economy grew 2.3 percent, better than the second estimate of 2.2 percent and following an upwardly revised 2 percent expansion in the previous three-month period. 

Eurozone Q2 GDP Growth Rate Confirmed at 0.6%


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/7/2017 9:24:08 AM