Eurozone 0.1% Q3 GDP Contraction Confirmed
(RTTNews) - The euro area economy contracted marginally in the third quarter as previously estimated, solely due to weaker global demand, suggesting that the currency bloc is on the verge of a recession.
Gross domestic product shrunk 0.1 percent quarterly, offsetting the 0.1 percent expansion in the second quarter, data published by Eurostat showed on Thursday.
The statistical office revised down the second quarter growth from 0.2 percent.
Year-on-year, GDP remained flat, which was revised down from the initially estimated 0.1 percent expansion. But the second quarter growth was lifted to 0.6 percent from 0.5 percent.
The breakdown of the third quarter GDP, released for the first time, showed that the contraction was driven by the net trade.
Household consumption and government spending grew 0.3 percent each. At the same time, gross fixed capital formation remained flat.
Exports fell 1.1 percent, falling for the second straight time. Imports slid 1.2 percent after remaining flat.
The quarterly growth in employment improved to 0.2 percent from 0.1 percent. Meanwhile, the annual increase softened to 1.3 percent from 1.4 percent.
Eurostat estimated that in the third quarter nearly 168.7 million people were employed in the euro area.
In the third quarter, productivity based on persons decreased by 1.2 percent compared to the same quarter of the previous year.
The International Monetary Fund has forecast the euro area to grow 0.7 percent this year and 1.2 percent in 2024.
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