September 12, 2023

GDP growth in the euro area and the EU

In the second quarter of 2023, seasonally adjusted GDP increased by 0.1% in the euro area and was stable in the EU, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2023, GDP had increased by 0.1% in the euro area and by 0.2% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.5% in the euro area and by 0.4% in the EU in the second quarter of 2023, after inreases of 1.1% in both zones in the previous quarter.

During the second quarter of 2023, GDP in the United States increased by 0.5% compared to the previous quarter (after +0.5% in the first quarter of 2023). Compared with the same quarter of the previous year, GDP increased by 2.5% (after +1.8% in the previous quarter).

GDP growth by Member State

Lithuania (+2.9%) recorded the highest increase of GDP compared to the previous quarter, followed by Slovenia (+1.4%) and Greece (+1.3%). The highest decreases were observed in Poland (-2.2%), Sweden (-0.8%) and Austria (-0.7%).

GDP components and contributions to growth

During the second quarter of 2023, household final consumption expenditure was stable in both the euro area and the EU (0.0% in the previous quarter). Government final consumption expenditure increased by 0.2% in both zones (after -0.6% in the euro area and -0.1% in the EU in the previous quarter). Gross fixed capital formation increased by 0.3% in the euro area and by 0.4% in the EU (after +0.3% and 0.0% respectively). Exports decreased by 0.7% in both zones (after 0.0% in the euro area and +0.1% in the EU). Imports increased by 0.1% in the euro area and decreased by 0.2% in the EU (after -1.3% and -1.4% respectively in the previous quarter).

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

Employment growth in the euro area and EU

The number of employed persons increased by 0.2% in the euro area and by 0.1% in the EU in the second quarter of 2023, compared with the previous quarter. In the first quarter of 2023, employment had increased by 0.5% in the euro area and by 0.4% in the EU.

Compared with the same quarter of the previous year, employment increased by 1.3% in the euro area and by 1.1% the EU in the second quarter of 2023, after +1.6% in the euro area and +1.5% the EU in the first quarter of 2023.

Hours worked increased by 0.2% in the euro area and decreased by 0.1% in the EU in the second quarter of 2023, compared with the previous quarter. Compared with the same quarter of the previous year, the hours worked increased by 0.9% in the euro area and by 0.5% in the EU.

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 second quarter of 2023, Lituania, Malta and Portugal (all +1.3%) recorded the highest growth of employment in persons compared with the previous quarter. The highest decline of employment was recorded in Estonia (-1.5%), Romania (-0.8%) and Croatia (-0.7%).

Source: Eurostat
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