Eurozone: More complete data show mild GDP acceleration in Q4
March 6, 2015
In the fourth quarter, the Eurozone economy grew a seasonally-adjusted 0.3% in Q4, according to preliminary data released by Eurostat on 6 March. The reading came in slightly above the 0.2% rise observed in Q3 and was in line with market expectations. On an annual basis, GDP growth rose from 0.8% in Q3 to 0.9% in Q4.
The mild acceleration in Q4 reflected an improvement in the external sector and a stronger growth in fixed investment. Exports of goods and service services increased 0.8% in Q4 over the previous quarter, which followed the 1.5% expansion observed in Q3. Imports increased 0.4% in Q4, which came in below the 1.7% contraction witnessed in Q3. As exports expanded and imports contracted, the external sector’s net contribution to overall economic growth was 0.2 percentage points in Q4, which improved over a flat reading in Q3.
On the domestic front, private consumption grew 0.4% in Q4 (Q3: +0.5% quarter-on-quarter) and government spending expanded 0.2%, mirroring an increase of the same magnitude in Q3. Meanwhile, fixed investment swung from a flat reading in Q3 to a 0.4% expansion in Q4.
Author: Ricardo Aceves, Senior Economist