June 7, 2018

According to Eurostat, the statistical office of the European Union, GDP rose by 0.4% in both the euro area (EA19) and the EU28 during the first quarter of 2018, compared with the previous quarter. Similarly, in the fourth quarter of 2017, GDP had grown by 0.7% in both zones. However, when compared with the same quarter of the previous year,  GDP rose by 2.5% in the euro area and by 2.4% in the EU28 in the first quarter of 2018, after rising 2.8% and 2.7% respectively in the previous quarter.

 GDP growth by Member State

Among Member States for which data are available for the first quarter of 2018, Latvia and Poland (both +1.6%) recorded the highest growth compared with the previous quarter, followed by Hungary and Finland (both +1.2%). Slightly negative growth was observed in Estonia (-0.1%) while GDP in Romania was stable.

GDP components and contributions to growth

During the first quarter of 2018, household final consumption expenditure rose by 0.5% in the euro area and by 0.4% in the EU28 (after +0.2% and +0.3% respectively in the previous quarter). Gross fixed capital formation increased by 0.5% in the euro area and by 0.8% in the EU28 (after +1.3% and +1.2%). Exports fell by 0.4% in the euro area and by 0.3% in the EU28 (after +2.2% and +1.8%). Imports decreased by 0.1% in the euro area and were stable for the EU28 (after +1.5% and +1.4%). Household final consumption expenditure had a positive contribution to GDP growth in both the euro area and the EU28 (+0.3 and +0.2 percentage points – pp respectively) and the contribution from gross fixed capital formation was also positive in both zones (+0.1 pp and +0.2 pp respectively). The contribution of the external balance to GDP growth was negative for both zones while the contribution of changes in inventories was positive for both zones.

During the first quarter of 2018, GDP in the United States increased by 0.5% compared with the previous quarter (after +0.7% in the fourth quarter of 2017). Compared with the same quarter of the previous year, GDP grew by 2.8% (after +2.6% in the previous quarter).

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