Economics, Finance and Information Technology

Give a more longer term perspective of Economic trends and the Macroeconomic and Monetary Interdependence of the Global Economy. With the Background of this approach the blog will deal with the implications for Investment decisions. The author believes that China and the Asia Pacific Region are and will be the powerhouse for the global economic growth for years to come. It will also cover IT because of its momentum driver for economic growth.

Wednesday 2 July 2014

Euro area Q1 GDP up by 0.2 % and EU-28 Q1 GDP up by 0.3 %

Euro area and European Union

Euro area GDP up by 0.2 % and EU-28 GDP up by 0.3 %

GDP rose by 0.2 % in the euro area (EA-18) and by 0.3 % in the EU-28 during the first quarter of 2014, compared with the previous quarter, according to third estimates (see Data sources and availability) published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2013, growth rates were 0.3 % and 0.4 % respectively.

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.9 % in the euro area and grew by 1.4 % in the EU-28 in the first quarter of 2014, after +0.5 % and +1.1 % respectively in the previous quarter.

During the first quarter of 2014, GDP in the United States fell by 0.7 % compared with the previous quarter (after +0.7 % in the fourth quarter of 2013). Compared with the same quarter of the previous year, GDP rose by 1.5 % (after +2.6 % in the previous quarter).

GDP growth by Member States

Among Member States for which data are available for the first quarter of 2014, Hungary and Poland (both +1.1 %) and Malta (+0.9 %) recorded the highest growth compared with the previous quarter, while the Netherlands^[1] (-1.4 %) and Estonia Cyprus (both -0.7%) registered the biggest decreases.

GDP components and contributions to growth

During the first quarter of 2014, household final consumption expenditure (NPISH included) rose by 0.2 % in the euro area and by 0.4 % in the EU-28 (after +0.1 % in the previous quarter). Gross fixed capital formation increased by 0.2 % in the euro area and by 0.5 % in the EU-28 (after +0.9 % in the euro area and +1.1 % in the EU-28). Exports rose by 0.2 % in the euro area and 0.4 % in the EU-28 (after +1.4 %). Imports increased by 0.8 % in the euro area and by 1.2 % in the EU-28 (after +0.6 % and +0.4 %).

The contribution of household final consumption expenditure was positive to GDP growth in both, the euro area and the EU-28 (+0.1 and +0.2 percentage points respectively). The contribution of gross fixed capital formation was neutral in the euro area and positive in the EU-28(+0.1 percentage points), as well as the change in inventories (+0.2 percentage points in both zones). The contribution of the external balance was negative (-0.2 in the euro area and -0.3 in EU-28).

Data from 30 June 2014. Most recent data: Further Eurostat information, Main tables and Database.

This article presents key messages and data extractions based on Eurostat's third estimation of quarterly gross domestic product (GDP) for the first quarter of 2014 in the European Union (EU-28) and euro area (EA-18) released on 2nd July 2014.

Eurostat's third regular GDP estimation is done approximately 100 days (t+100) after the end of each quarter. Earlier estimates of GDP growth in each quarter are compiled at about t+45 days (GDP flash) and t+65 days (second GDP release, including breakdowns by expenditure components and gross value added by industries). Additional aggregates are published with the first estimate of employment data (t+75). While these estimations are presented in dedicated press releases,the third estimate consists mainly in a comprehensive database update.