In the second quarter, Eurozone GDP contracted 0.2% over the previous period, confirming the result of the flash estimate released by the statistical office (Eurostat) on 14 August. The reading was below the flat reading recorded in the first quarter. On an annual basis, the economy contracted 0.5%, which was down from the 0.1% drop recorded in the previous quarter and marked the worst reading since the final quarter of 2009. The result was driven by a deterioration in the net contribution from the external sector. Exports of goods and services rose 1.3% over the previous quarter, which was above the 0.7% rise observed in Q1, while imports rose 0.9%, contrasting a 0.2% fall in the previous three-month period. As a result, the contribution from net exports to overall growth fell from 0.4 percentage points in Q1 to 0.2 percentage points in Q2. Meanwhile, private consumption contracted 0.2% over previous quarter, mirroring the result recorded in Q1, while fixed investment improved from a 1.3% drop in Q1 to a 0.8% fall. Despite the improvement in fixed investment, a negative shift in inventories caused domestic demand to contract at the same 0.4% pace seen in the previous quarter.
Q2 contraction confirmed in second quarter
September 6, 2012
Looking for forecasts related to GDP in Eurozone? Download a sample report now.
Eurozone Economic News
October 20, 2016
The European Central Bank (ECB) decided to stay the course and made no changes to its monetary policy at its 20 October meeting, matching market expectations.
October 17, 2016
Complete data released by Eurostat on 17 October confirmed that harmonized inflation was 0.4% in September, above August’s 0.2% and the highest reading seen since June 2014.
October 12, 2016
The industrial sector in the common-currency bloc grew in August after contracting in July.
September 30, 2016
Inflation rose to an almost two-year high in September, providing some evidence that the European Central Bank’s monetary stimulus is bearing fruit.
September 30, 2016
Conditions in the labor market in the common-currency bloc remained broadly unchanged in August, according to recently released data by Eurostat.