The euro area economy posted a 0.3% rise in gross domestic product (GDP) in the third quarter, compared with the previous three months. The gain came from stronger household spending and higher investment, which helped offset a tougher external balance profile, according to Eurostat data released on Wednesday.
This quarterly growth rate surpassed the earlier forecast of 0.2% by one-tenth of a percentage point, yet it confirms a slowing momentum for the eurozone, especially when contrasted with a 0.8% expansion seen in the second quarter of the year.
Across the European Union as a whole, GDP advanced by 0.4% in the July-to-September period, a two-tenths upgrade from the preliminary estimate but still down by three-tenths compared with the growth recorded between April and June.
On an annual basis, third-quarter GDP rose 2.3% in the euro area and 2.5% in the European Union. This followed increases of 4.2% and 4.3% respectively in the second quarter, signaling a notable deceleration in year-on-year growth.
Among member countries, Ireland led with a 2.3% quarterly GDP rise, followed by Cyprus, Malta, and Romania at 1.3% each. In contrast, Estonia, Latvia, and Slovenia registered contractions of 1.8%, 1.7%, and 1.4%, respectively, during the same period.
Spain posted a slightly below-average pace, with GDP growing 0.2% in both the euro area and the European Union measures during the third quarter.
consumption and investment
The mild overall growth in the euro area and the bloc is mainly explained by solid household consumption and a pickup in gross fixed capital formation, even as imports, particularly energy products, rose and weighed on the external balance.
Household consumption rose by 0.9% in the euro area and by 0.7% in the EU during the third quarter, while investment accelerated to notable positive rates of 3.6% and 3.2%, respectively. Exports rose by 1.7% in the euro area and 1.9% in the EU, but import growth outpaced them, increasing by 4.3% in the euro area and 4.0% in the EU.
Public spending stayed nearly flat in the third quarter, with a 0.1% rise in both the eurozone and EU, contributing little to the GDP trajectory.
employment growth
In terms of employment, the number of people with jobs rose by 0.3% in the euro area and by 0.2% in the European Union compared with the previous quarter. Year-on-year, employment growth stood at 1.8% in the euro area and 1.5% across the Twenty-Seven. Hours worked declined by 0.1% from the second quarter, but the year-on-year picture showed a healthier trend: hours worked up by 2.1% in the euro area and 0.3% in the EU, with the annual pace at 2.1% and 1.6%, respectively.
Among member states, Spain recorded the strongest quarterly employment rise at 1.4%, followed by Malta and Cyprus at 1.0% each. Finland and Romania experienced the largest declines, with contractions of 0.8% and 0.6%, respectively, while Poland showed a smaller fall of 0.4%.