In its latest release of the GDP estimates for the 2nd quarter, Eurostat has edged this down to growth of +0.2% compared to the previous quarter for both the EU and the Euro-zone (from +0.3% for both areas – this remains the rate recorded in Q1). However, the comparison with the level of a year ago is unchanged at +0.8% for the EU and +0.6% for the Euro-zone.
The main driver of growth in Q2-24 was net trade with exports growing more rapidly than imports and there was also a small positive effect from government final expenditure; on the downside, the most important effect came from a reduction in gross fixed capital formation (investment).
This release of the data has more countries with all of the Member States now having published their Q2 figures. Six countries – Austria, Germany, Hungary, Ireland (caution is needed because of the impact of multi-national headquarters operations here), Latvia and Sweden – saw their economies contract compared to the 1st quarter of 2024 but as all of these had some growth in the previous period, none of them are in a recession.
In addition, Estonia recorded no change in GDP in the latest period – technically, this brings an end to their recession, although even a small downward revision would mean that this situation changes.
Comparing to the level of GDP a year ago, Austria, Estonia, Finland, Ireland (see note above) and Latvia have a negative trend and Germany is unchanged.
You can get the Eurostat figures from their website at https://ec.europa.eu/eurostat/web/main/news/euro-indicators (06 September) or request it from MTA.