GDP up by 0.6% and employment up by 0.6% in the euro area

June 11, 2022

GDP growth in the euro area and the EU

In the first quarter of 2022, seasonally adjusted GDP increased by 0.6% in the euro area and by 0.7% in the EU compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2021, GDP had grown by 0.2% in the euro area and 0.5% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 5.4% in the euro area and by 5.6% in the EU in the first quarter of 2022, after +4.7% in the euro area and +4.9% in the EU in the fourth quarter of 2021.

During the first quarter of 2022, GDP in the United States decreased by 0.4% compared with the previous quarter (after +1.7% in the fourth quarter of 2021). Compared with the same quarter of the previous year, GDP increased by 3.5% (after +5.5% in the fourth quarter of 2021).

GDP growth by Member State

Ireland (+10.8%) recorded the highest increase of GDP compared to the previous quarter, followed by Romania (+5.2%) and Latvia (+3.6%). Decreases were observed in Sweden (-0.8%), France (-0.2%) and Denmark (-0.1%).

GDP components and contributions to growth

During the first quarter of 2022, household final consumption expenditure decreased by 0.7% in the euro area and by 0.5% in the EU (after -0.3% in both the euro area and the EU in the previous quarter). Government final consumption expenditure decreased by 0.3% in both the euro area and the EU (after +0.4% in the euro area and +0.5% in the EU in the previous quarter). Gross fixed capital formation increased by 0.1% in the euro area and by 0.7% in the EU (after +3.1% and +2.7% respectively). Exports increased by 0.4% in both the euro area and the EU (after +2.7% and +2.9%). Imports decreased by 0.6% in the euro area and by 0.2% in the EU (after +4.7% and +4.2%).

Household final consumption expenditure had negative contributions to GDP growth in both the euro area and the EU (-0.3 percentage points – pp in both zones). The contributions from government final expenditure were negative (-0.1 pp in both zones). The contribution of gross fixed capital formation was negligible for the euro area and positive for the EU (0.0 pp and 0.1 pp respectively). The contributions from the external balance were positive (0.4 pp for the euro area and 0.2 pp for the EU). The contributions from changes in inventories were positive for both zones (0.6 pp for the euro area and 0.7 pp for the EU).

Employment growth in the euro area and EU

The number of employed persons increased by 0.6% in the euro area and by 0.5% in the EU in the first quarter of 2022, compared with the previous quarter. In the fourth quarter of 2021, employment had increased by 0.4% in both the euro area and the EU.

Compared with the same quarter of the previous year, employment increased by 2.9% in the euro area and by 2.8% in the EU in the first quarter of 2022, after +2.1% in both zones in the fourth quarter of 2021

Hours worked increased by 1.3% in the euro area by 1.1% in the EU in the first quarter of 2022, compared with the previous quarter. Compared with the same quarter of the previous year the increases were 6.9% in the euro area and 6.1% in the EU (see annex table on employment in hours worked).

These data provide a picture of labour input consistent with the output and income measure of national accounts.

Employment growth in Member States

In the first quarter of 2022, Estonia (+3.5%), Latvia (+2.1%) and Portugal (+1.7%) recorded the highest growth of employment in persons compared with the previous quarter. Employment declined in Poland (-0.6%) and Croatia (-0.1%).

Evolution of labour productivity in the euro area and EU

The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous year shows that productivity growth fluctuated around 1% for both zones between 2013 and 2018 before the COVID-19 pandemic caused high volatility in 2020. In the first quarter of 2022, productivity based on persons increased by 2.5% in the euro area and 2.7% in the EU compared to the same quarter of the previous year. Based on hours worked, productivity compared to the same quarter of the previous year decreased by 0.9% in the euro area and by 0.1% in the EU.

Source: Eurostat
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