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European Economy Stagnated in the Third Quarter, Croatia Second in Growth Rate

The economy of the eurozone and the EU stagnated in the third quarter compared to the same period last year, with Croatia recording the second highest growth rate among Union countries, behind Malta, according to a report from Eurostat released on Thursday.

In the second quarter, the eurozone economy grew by 0.6 percent year-on-year, while the Union as a whole grew by 0.5 percent. The largest growth in the third quarter was achieved by Malta, at 7.1 percent, followed by Croatia with a GDP growth of three percent in the third quarter compared to the same period last year, according to seasonally adjusted data. In the second quarter, it grew by 2.2 percent.

Romania was closest to Croatia, with its economy growing by 2.9 percent in the third quarter. Cyprus and Greece also recorded GDP growth of 2.2 and 2.1 percent, respectively, compared to the third quarter of last year. The largest decline in economic activity was in Ireland, down 5.6 percent year-on-year. Estonia also saw a GDP decline of four percent compared to the same period last year. The largest European economy, Germany, fell by 0.4 percent. Latvia’s economy remained at the level of the third quarter of 2022.

Slight Decline in the Eurozone on a Quarterly Basis

On a quarterly basis, activity in the 20-member economy decreased by 0.1 percent from July to September, confirming the statistical office’s previous estimate of the same percentage growth. In the EU, activity remained at the level of the previous three months, as confirmed by the latest calculations. In the second quarter, the GDP of the Union and the eurozone grew by 0.1 percent.

The strongest GDP growth on a quarterly basis was recorded in the third quarter by Malta, at 2.4 percent, followed by Poland and Cyprus with growth of 1.5 and 1.1 percent, respectively.

In Croatia, GDP in the third quarter grew by 0.3 percent compared to the previous three months when it increased by 1.5 percent. Spain also recorded the same growth rate in the third quarter, while Latvia and Slovakia were very close with a quarterly GDP growth of 0.2 percent.

The strongest quarterly decline was in Irish GDP, down 1.9 percent. Estonia and Finland followed with activity declines of 1.3 and 0.9 percent, respectively. German GDP slipped by 0.1 percent compared to the second quarter, when it had increased by the same percentage. The GDP of Denmark, France, and Luxembourg also decreased by the same percentage. In Greece and Lithuania, economic activity remained at the level of the second quarter, according to Eurostat data.

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