Eurozone GDP

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Eurozone: GDP expansion continues at slower pace in Q1

June 4, 2014

In the first quarter, Eurozone GDP expanded 0.2% over the previous period (Q4 2013: +0.3% quarter-on-quarter). The result was in line with the flash estimate released by the statistical office (Eurostat) on 15 May and marked the fourth consecutive expansion following a streak of six periods of contraction—the longest recession in the Euro area’s history. On an annual basis, the economy expanded 0.9%, which was up from the 0.5% expansion recorded in the previous quarter and marked the strongest reading in more than two years.

The slight deceleration in Q1 was the result of a weaker external sector, while domestic demand improved compared to the previous quarter. Private consumption rose 0.1% over the previous quarter, which was up from the flat reading recorded in Q4. Government consumption increased 0.3% over the previous quarter, which marked a rebound over the 0.4% drop recorded in Q4. That said, fixed investment slowed from a 0.9% increase in Q4 to a 0.4% rise in Q1. Overall, domestic demand expanded 0.4% compared to the previous quarter, which contrasted the 0.1% expansion drop in Q4.The result also benefitted from a positive shift in inventories.

Exports of goods and services rose 0.3% over the previous quarter, which was down from the 1.4% increase recorded in Q4. Meanwhile, imports grew 0.8% (Q4: +0.7% qoq). As imports outpaced exports, the contribution of net exports to overall growth swung from plus 0.3 percentage points in Q4 to minus 0.2 percentage points in Q1.

FocusEconomics Consensus Forecast panelists expect the economy to expand 1.1% in 2014, which is down 0.1 percentage points from last month’s forecast. For 2015, panelists expect the economy to expand 1.5%.


Author:, Head of Data Solutions

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Eurozone GDP Chart


Euro GDP Q1 2014 0

Note: Quarter-on-quarter changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Eurostat


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