How strong is the EU economy? In the 4th quarter, the economy of 19 countries of the euro area increased by 0.1% compared with the previous quarter, according to the final data of the EU Statistical Office. An increase of 0.1% was also reported earlier, and analysts on average did not expect that estimate to be revised up, according to Trading Economics.The rate of growth was the slowest since the first quarter of 2021, amid negative pressures from high inflation.

Size of the EU economy continues to rise

Despite problems in the EU stock market, in particular the DAX Index, in annualized terms, euro zone GDP grew 1.9% in October-December, as previously reported. In the third quarter, GDP growth in the euro area was 0.3% in quarterly terms and 2.3% in annual terms. GDP of the 27 states of the European Union in the 4th quarter was unchanged in quarterly terms after growth of 0.3% in the previous quarter. Growth in annual terms was 1.8%.

The highest quarter-on-quarter growth was seen in Ireland (3.5%), Cyprus, Romania and Denmark (1.1%). The greatest decrease was observed in Poland (-2.4%), Lithuania (-1.7%).

The Eurostat report also includes data on the dynamics of employment in the Eurozone and the EU in Q4. According to the final data, the number of employed people grew by 0.4% compared to the previous quarter in both the eurozone and the EU.

Germany’s GDP fell 0.2% quarter-on-quarter after rising 0.5% in Q3. In France, economic growth slowed to 0.1% from 0.2% a month earlier. In Italy, the economy declined by 0.1% after rising 0.5 in July-September. In Spain, GDP grew 0.2%, the same as in Q3.

Earlier we reported that industrial production in the Eurozone fell by 1.1% in December and by 0.4% in the EU.