Economic Activity and Employment in the EU and Eurozone Slowed

Economic activity in the EU and eurozone sharply slowed in the third quarter, and employment also faltered, new estimates from the European statistical office showed on Tuesday.

Seasonally adjusted gross domestic product (GDP) of the EU and eurozone grew by 0.2 percent in the third quarter compared to the previous three months when it increased by 0.7 percent in the Union and by 0.8 percent in the eurozone, Eurostat confirmed in its first estimates.

Growth rates are the lowest since the beginning of last year.

On an annual basis, seasonally adjusted GDP of the EU and eurozone increased by 2.4 and 2.1 percent in the third quarter, also the weakest since the first quarter of 2021, according to Eurostat’s estimate from the end of October.

In the period from April to June, it grew by 4.3 percent in both areas.

Cyprus and Romania at the Fore

Among the countries for which Eurostat had data, the strongest growth in activity from July to September compared to the previous three months was recorded by Cyprus and Romania, at 1.3 percent.

Close behind are Poland and Sweden with GDP growth of 0.9 and 0.7 percent compared to the second quarter.

In Germany, the largest European economy and an important trading partner of Croatia, the economy grew by 0.3 percent.

The most significant decline in activity was in Latvia and Slovenia, by 1.7 and 1.4 percent, respectively.

Following are the Czech Republic and Hungary with a 0.4 percent decline, while activity slightly decreased in the Netherlands by 0.2 percent, and in Belgium, Austria, and Finland by 0.1 percent.

Eurostat did not have data for Estonia, Greece, Spain, Croatia, Luxembourg, and Malta.

Decline in Latvia

Almost all EU countries for which Eurostat had data recorded GDP growth in the third quarter compared to the same period last year, with the exception of Latvia where it decreased by 0.4 percent.

The highest growth was recorded by Cyprus, at 5.4 percent.

Following are Portugal and Romania with GDP growth of 4.9 and 4.7 percent, respectively.

Faltering Employment

The growth in the number of employed in the EU and eurozone reflected a weaker pace of economic growth, with only 0.2 percent more employed in both areas than in the period from April to June when their number increased by 0.4 percent.

Compared to the third quarter of last year, the number of employed increased by 1.5 percent in the EU and by 1.7 percent in the eurozone.

In the spring quarter, it increased by 2.4 percent in the EU and by 2.7 percent in the area of application of the common euro currency.