Euro Area: GDP growth slows considerably in Q4

Euro Area GDP Q4 2021

Euro Area: GDP growth slows considerably in Q4

According to a third estimate, the Euro area economy expanded a seasonally-adjusted 0.3% from the previous quarter in Q4, which followed Q3’s 2.3% increase. This data confirmed that of the preliminary releases. Compared with the same quarter of the previous year, seasonally-adjusted GDP expanded 4.6% in Q4, accelerating from Q3’s 4.0% rise.

The quarterly expansion came amid the tightening of Covid-19-related containment measures triggered by the Omicron variant, which hit household spending. Private consumption fell 0.6% over the previous quarter in Q4 (Q3: +4.5% s.a. qoq). However, fixed investment expanded 3.5% (Q3: -0.9% s.a. qoq), while public consumption growth came in at 0.5% (Q3: +0.3% s.a. qoq). Additionally, restocking added 0.3 percentage points to growth, as companies beefed up their inventories amid sustained supply uncertainty.

Meanwhile, the external sector subtracted 0.6 percentage points from the overall reading, as exports increased 2.9% (Q3: +1.7% s.a. qoq), and imports rose 4.6% (Q2: +1.4% s.a. qoq).

In terms of specific countries, the sharpest expansion among the major players was recorded in Spain (Q4: +2.0% s.a. qoq), followed by France (Q4: +0.7% s.a. qoq) and Italy (Q4: +0.6% s.a. qoq), while Germany’s economy shrank (Q4: -0.3% s.a. qoq).

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest