Eurozone Economy Declines, EU Stagnates

The eurozone economy has slightly declined in the third quarter, the first time in nearly three years, confirmed the European statistical office, slightly improving the estimate for the EU which now shows stagnation in activity.

Economic activity in the eurozone decreased by 0.1 percent in the third quarter compared to the previous three months when it grew by 0.2 percent, according to Eurostat’s seasonally and calendar-adjusted data. The area using the common euro currency recorded a GDP decline for the first time since the end of 2020.

In the EU, activity remained at the level of the period from April to June, new calculations show. The estimate at the end of October indicated a decline of 0.1 percent. In the second quarter, the Union’s GDP also increased by 0.2 percent.

On an annual basis, GDP in the third quarter increased by 0.1 percent in both areas, confirmed the European statistical office’s estimate from the end of October. In the second quarter, it increased by 0.5 percent in the eurozone and by 0.4 percent in the EU.

Ireland with the Strongest Decline

Among the 13 countries for which Eurostat had data, Ireland recorded the largest decline in economic activity in the third quarter compared to the previous three months, at 1.8 percent. Finland and Austria followed with GDP declines of 0.9 and 0.6 percent, respectively. The largest growth in activity was recorded in Poland, at 1.4 percent. Cyprus and Hungary followed with increases of 1.1 and 0.9 percent, respectively. Eurostat did not have data for Greece, Croatia, Luxembourg, and Malta.

The Positive Nine

Only nine countries recorded annual GDP growth in the third quarter, according to Eurostat data.

The strongest growth was in Cyprus and Romania, at 2.2 and 2.1 percent, respectively. Portugal and Spain followed closely with growth rates of 1.9 and 1.8 percent.

Bulgaria and Belgium recorded growth rates above one percent, at 1.7 and 1.5 percent, respectively. The strongest annual decline was in Irish GDP, at 4.7 percent. Estonia followed with a decline of 2.5 percent, and Austria with a 1.2 percent decline. In Italy and Lithuania, the economy remained at the level of the third quarter of the previous year, according to Eurostat data.

Slight Recovery in Employment

Employers slightly increased the pace of hiring from July to September compared to the previous three months, with a growth rate of 0.3 percent in the eurozone and 0.2 percent in the EU, statisticians calculated. In the spring quarter, the number of employed increased by 0.1 percent in both areas.

On an annual basis, the number of employed increased by 1.4 percent in the eurozone and by 1.3 percent in the EU in the third quarter, almost the same as in the previous three months.