GDP up by 0.8% and employment up by 0.4% in the euro area and for the EU, GDP up by 0.7% and employment up by 0.4%

September 13, 2022

GDP growth in the euro area and the EU

In the second quarter of 2022, seasonally adjusted GDP increased by 0.8% 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 first quarter of 2022, GDP had grown by 0.7% in the euro area and 0.8% in the EU

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 4.1% in the euro area and by 4.2% in the EU in the second quarter of 2022, after +5.4% in the euro area and +5.5% in the EU in the first quarter of 2022.

During the second quarter of 2022, GDP in the United States decreased by 0.1% compared with the previous quarter (after -0.4% in the first quarter of 2022). Compared with the same quarter of the previous year, GDP increased by 1.7% (after +3.5% in the first quarter of 2022)

GDP growth by Member State

The Netherlands (+2.6%) recorded the highest increase of GDP compared to the previous quarter, followed by Romania (+2.1%) and Croatia (+2.0%). Decreases were observed in Poland (-2.1%), Estonia (-1.3%), Latvia (-1.0%) and Lituania (-0.5%).

GDP components and contributions to growth

During the second quarter of 2022, household final consumption expenditure increased by 1.3% in the euro area and by 1.2% in the EU (after 0.0% in both the euro area and the EU in the previous quarter). Government final consumption expenditure increased by 0.6% in both the euro area and the EU (after +0.2% in the euro area and +0.1% in the EU in the previous quarter). Gross fixed capital formation increased by 0.9% in the euro area and by 0.7% in the EU (after -0.8% and 0.0% respectively). Exports increased by 1.3% in the euro area and by 1.4% in the EU (after +1.2% and +1.0%). Imports increased by 1.8% in the euro area and by 1.9% in the EU (after -0.2% and +0.2%).

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

GDP levels in the euro area and EU

Based on seasonally adjusted figures, GDP volumes in the euro area and EU were 1.8% and 2.3% respectively above the level recorded in the fourth quarter of 2019, before the COVID-19 outbreak.

For the United States, GDP was 2.6% higher than the level of the fourth quarter of 2019

Employment growth in the euro area and EU

The number of employed persons increased by 0.4% both in the euro area and in the EU in the second quarter of 2022, compared with the previous quarter. In the first quarter of 2022, employment had increased by 0.7% in the euro area and by 0.5% the EU.

Compared with the same quarter of the previous year, employment increased by 2.7% in the euro area and by 2.4% in the EU in the second quarter of 2022, after +3.1% in euro area and +2.9% in the EU in the first quarter of 2022.

Hours worked increased by 0.6% in the euro area and by 0.5% in the EU in the second quarter of 2022, compared with the previous quarter. Compared with the same quarter of the previous year, the increases were 3.7% in the euro area and 3.0% 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 second quarter of 2022, Lithuania (+3.1%), Czechia and Ireland (both +1.6%) recorded the highest growth of employment in persons compared with the previous quarter. Employment declined in Spain (-1.1%), Portugal ( -0.7%), Estonia (-0.6%), Romania (-0.5%) and Croatia (-0.4%).

Employment levels in the euro area and EU

Based on seasonally adjusted figures, Eurostat estimates that in the second quarter of 2022, 213.4 million people were employed in the EU, of which 164.1 million were in the euro area.
In relation to the COVID-19 pandemic, employment in persons in the euro area was 2.7 million above the level of the fourth quarter of 2019, and 3.5 million above this level in the EU.

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 second quarter of 2022, productivity based on persons increased by 1.5% in the euro area and 1.8% 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 increased by 0.3% in the euro area and by 1.0% in the EU.

Source: Eurostat
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