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Eurozone economy growth thanks to increased household spending

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File photo Copyright Martin Meissner/Copyright 2023 The AP. All rights reserved.
Copyright Martin Meissner/Copyright 2023 The AP. All rights reserved.
By Angela Barnes
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In the first quarter of 2024, the eurozone economy grew by 0.3% compared with the previous quarter, according to the third estimate published by Eurostat, the statistical office of the European Union.

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Eurostat also reported on Friday that the EU saw a 0.3% increase in its gross domestic product (GDP) quarter-on-quarter.

Meanwhile, compared with the same quarter in 2023, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.5% in the EU.

GDP growth by member state

Malta (+1.3%) recorded the highest increase of GDP compared to the previous quarter, followed by Cyprus (+1.2%) and Croatia (+1.0%).

Decreases were observed in Denmark (-1.8%), Estonia (-0.5%) and the Netherlands (‑0.1%).

Components and contributions to growth

According to Eurostat, GDP components evolved in the first quarter of 2024 as follows:

  • Household final consumption expenditure increased by 0.2% in both the euro area and the EU

  • Government final consumption expenditure was stable in the euro area and increased by 0.1 in the EU

  • Gross fixed capital formation decreased by 1.5% in both the euro area and the EU

  • Exports increased by 1.4% in the euro area and by 1.0% in the EU

  • Imports decreased by 0.3% in the euro area and by 0.2% in the EU

Meanwhile, the contribution to GDP growth came from household final consumption expenditure, which was positive for both the euro area and the EU (+0.1 percentage points – pp), while government final expenditure was negligible for both zones (+0.0 pp for both).

Gross fixed capital formation was negative for both the euro area and the EU (-0.3 pp for both), changes in inventories was negative for both euro area (-0.3 pp) and the EU (-0.1 pp), while exports minus imports was positive for both the euro area (+0.9 pp) and the EU (+0.6 pp).

Employment growth in eurozone and EU

Meanwhile, the number of employed persons increased by 0.3% in both the euro area and the EU in the first quarter of 2024, compared with the previous quarter, after +0.3% in the euro area and +0.2% in the EU in the fourth quarter of 2023.

"Compared with the same quarter of the previous year, employment increased by 1.0% in the euro area and by 0.9% in the EU in the first quarter of 2024, after +1.2% in the euro area and +1.0% in the EU in the fourth quarter of 2023," Eurostat said.

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