Eurozone: Detailed data confirm recession in Euro area
December 6, 2012
In the third quarter, Eurozone GDP contracted 0.1% over the previous period, confirming the result of the flash estimate released by the statistical office (Eurostat) on 15 November. The contraction was smaller than the 0.2% drop seen in Q2 and puts the Euro area in a technical recession for the first time since 2009.
On an annual basis, the economy contracted 0.6%, which was down from the 0.5% drop recorded in the previous quarter and marked the worst reading recorded since the final quarter of 2009. The result was driven by a deterioration in the net contribution from the external sector. Exports of goods and services rose 0.9% over the previous quarter, which was well below the 1.6% rise observed in Q2, while imports rose 0.2%, marking a moderation over the 0.6% increase in the previous three-month period.
As a result, the contribution from net exports to overall growth fell from 0.4 percentage points in Q2 to 0.3 percentage points in Q3. On the domestic side of the economy, private consumption was unchanged over the previous quarter, which contrasted the 0.4% contraction recorded in Q2. Fixed investment improved from a 1.8% drop in Q2 to a 0.7% fall in Q3. As a result, domestic demand contracted 0.4% over the previous quarter, which was, nonetheless, above the 0.6% drop recorded in Q2.
Author: Armando Ciccarelli, Head of Data Solutions