Eurozone: Second release confirms slight GDP acceleration in Q3
December 5, 2014
In the third quarter, Eurozone GDP expanded 0.2% over the previous period (Q2: +0.1% quarter-on-quarter). The result was in line with the flash estimate released by the statistical office (Eurostat) on 14 November. On an annual basis, the economy expanded 0.8%, which was in line with the 0.8% expansion recorded in the previous quarter.
The slowdown in Q3 was the result of stronger domestic demand, whereas the contribution from the external sector deteriorated compared to Q2. Private consumption rose 0.5% over the previous quarter, which was up from the 0.3% increase recorded in Q2. Meanwhile, government consumption increased 0.3% over the prior quarter, in line with the result recorded in Q2. Fixed investment contracted 0.3% over Q2, which was a smaller drop than the 0.7% drop recorded in Q2 but yet marked a second consecutive contraction.
Exports of goods and services rose 1.3% over the previous quarter, which was slightly down from the 1.3% increase recorded in Q2. Meanwhile, imports grew 1.4% (Q2: +1.3% qoq). Imports outpaced exports and thus the contribution of net exports to overall growth inched down from plus 0.1 percentage points in Q2 to zero percentage points in Q3.
Author: Armando Ciccarelli, Head of Data Solutions