Eurozone: Flat reading confirmed in Q1
June 6, 2012
In the first quarter, Eurozone GDP was flat over the previous period, confirming the result of the flash estimate released by the statistical office (Eurostat) on 14 May. The reading was above the 0.3% drop recorded in the fourth quarter. On an annual basis, the economy contracted 0.1%, contrasting the 0.7% expansion recorded in the previous quarter. The first quarter reading was driven by an improvement in the domestic sector, while the net contribution from the external sector was unchanged from the previous quarter. Private consumption was flat over the previous quarter, which came in above the 0.5% quarter-on-quarter drop recorded in Q4 2011. On the other hand, gross fixed investment fell 1.4%, exceeding the 0.4% drop recorded in the previous period. Exports of goods and services rose 1.0% over the previous quarter, contrasting the 0.7% drop observed in Q4, while imports rose 0.1% (Q4: -1.7%). As a result, the contribution from net exports to overall growth was unchanged at the 0.4 percentage points recorded in the fourth quarter.
Author: Armando Ciccarelli, Head of Data Solutions