Eurozone: Revised GDP data shows moderate growth in Q3
December 8, 2015
Revised data showed that the Eurozone economy continued to grow in the third quarter, although at a more moderate pace. GDP increased a seasonally-adjusted 0.3% in Q3 compared to the previous quarter. The result confirmed the 13 November preliminary estimate and fell short of both the 0.4% expansion registered in the previous quarter and the 0.4% increase the markets had expected. Compared to the same quarter last year, GDP growth stood at Q2’s 1.6% in Q3.
The more complete data set indicated that the external sector dragged on growth in Q3, while growth in domestic demand remained solid. Private consumption increased 0.4% in Q3 (Q2: +0.3% quarter-on-quarter) and government consumption expanded 0.6% in Q3 (Q2: +0.3% qoq). Growth in fixed investment was flat in the third quarter, which moderated over the 0.1% rise tallied in Q2.
On the external front, exports of goods and services decelerated sharply from a 1.6% increase in Q2 to a 0.2% expansion in Q3. Imports maintained rhythm in Q3 and increased 0.9%, matching the reading observed in Q2.
In December, the European Central Bank stated that after an expected 1.5% increase in 2015, it projects that the Eurozone economy will expand 1.7% in 2016. Looking forward, the Bank expects the economy to increase 1.9% in 2017.
Author: Ricardo Aceves, Senior Economist