In the third quarter, the euro area economy expanded by a revised 0.4%. It was still 0.3% in a previous estimate. The weaker figure is partly related to the decline in consumer spending due to high inflation. For example, the contraction in Germany, Europe’s largest economy, has been stronger than previously expected.
The German economy contracted by 0.4%, while Eurostat had previously reported a decline of 0.2%. At the same time, growth in Ireland has been much weaker than a previous estimate.
The downward revision also means that annual growth in the eurozone in the recent quarter is a little less strong than previously thought. This is now 1.8 percent, versus a previous estimate of 1.9 percent.
The economy of the whole European Union showed a contraction of 0.1% on a quarterly basis in the fourth quarter, according to new data from Eurostat. Neither growth nor contraction has previously been reported here. In the third quarter, growth in the EU was revised up to 0.4%, from 0.3% previously. Compared to a year ago, the EU economy grew by 1.7%.
Eurostat also reported that the strongest growth within EU member states was observed in Greece in the fourth quarter (up 1.4% qoq). In Poland, the economy contracted the most (down 2.4%). For the Netherlands there was an increase of 0.6%.