EU Economy Slightly Grows at the End of 2023; Eurozone Stagnation

The EU economy has slightly grown in the fourth quarter of 2023, reported the European statistical office, confirming the estimate of stagnation in activity in the eurozone.

Seasonally adjusted gross domestic product (GDP) of the EU increased by 0.1 percent from October to December compared to the previous three months, according to new estimates from the European statistical office. At the end of January, calculations indicated stagnation in activity. The GDP of the eurozone remained at the level of the summer quarter in the last three months of last year, statisticians confirmed the estimate from the end of January.

In the period from July to September, activity in both areas decreased by 0.1 percent compared to the previous three months. Among the leading economies, Spain recorded the strongest growth, at 0.6 percent. Italy followed with a mild GDP growth of 0.2 percent.

In France, activity remained at the level of the previous quarter, while in Germany it decreased by 0.3 percent. According to Eurostat’s available data, Portugal and Cyprus recorded by far the strongest quarterly GDP growth, at 0.8 percent. Conversely, economic activity in Ireland decreased the most, by 0.7 percent.

Eurostat did not have data for Greece, Croatia, and Malta. In the estimates from the end of January, they stated that they had data for 18 countries that make up 96 percent of the eurozone’s GDP and 94 percent of the EU’s GDP, but the report contained data from 12 member states.

Slovenia at the Forefront

On an annual basis, the GDP of the eurozone grew by 0.1 percent from October to December, following stagnation in the previous three months, Eurostat confirmed.

They slightly raised the estimate for the EU’s GDP growth in the fourth quarter from 0.2 to 0.3 percent. In the period from July to September, activity remained at the level of the same period in 2022, they confirmed.

By far the strongest annual growth in activity was recorded in Slovenia, at 2.6 percent. Cyprus and Portugal also made the list with activity growth of 2.3 and 2.2 percent, respectively.

Among the leading economies, Spain recorded the strongest growth at 2.0 percent. France and Italy followed with growth rates of 0.7 and 0.5 percent, respectively.

In Germany, activity decreased by a slight 0.2 percent.

The largest decline in activity was recorded in Ireland at the end of last year, down 4.8 percent compared to the last three months of 2022, according to Eurostat’s report.

Stable Employment Pace

The number of employed persons in the EU and the eurozone increased by 0.3 percent in the last three months of 2023 compared to the previous three months, statisticians calculated.

In the period from July to September, it increased in both areas by 0.2 percent, according to the first estimates from the European statistical office.

Compared to the end of 2022, the number of employed persons in the eurozone increased by 1.3 percent and by 1.2 percent in the EU, at the same pace as in the previous three months, Eurostat’s calculations showed.