The final data published by Eurostat showed that in the fourth quarter the economy stagnated, in accordance with the preliminary assessment and forecasts of economists. In the third quarter, the economy contracted by 0.1%. The GDP of the EU countries also remained unchanged, as in the third quarter.
In annual terms, the eurozone economy grew by 0.1%, as expected, after a similar increase in the third quarter (revised from 0.0%), while EU GDP grew by 0.2% after growing by 0.1%. For the year 2023 as a whole, GDP increased by 0.4% in both the euro area and the EU, after +3.4% in both zones in 2022.
Denmark (+2.0%) recorded the highest increase in GDP compared to the previous quarter, followed by Croatia (+1.3%) and Slovenia (+1.1%). The highest decreases were observed in Ireland (-3.4%), followed by Estonia and Finland (both ‑0.7%).
The data also showed that in the fourth quarter household final consumption expenditure increased by 0.1% in the euro area and by 0.2% in the EU (after +0.3% in both the euro area and the EU in the previous quarter), government final consumption expenditure increased by 0.6% in the euro area and by 0.3 in the EU (after +0.6% in both zones in the previous quarter), gross fixed capital formation increased by 1.0% in the euro area and by 0.8% in the EU (after 0.0% and +0.1% respectively), exports were stable in the euro area and increased by 0.8% in the EU (after -1.2% in the euro area and -1.1% in the EU), and imports increase by 0.6% in the euro area and by 1.2% in the EU (after -1.4% and -1.6% respectively).
A separate report showed that the number of employed in the eurozone increased by 0.3%, accelerating compared to the third quarter (+0.2%). Economists also expected growth of 0.3%. In annual terms, employment growth slowed to 1.2% from 1.3% in the third quarter. Consensus estimates suggested an increase of 1.3%.