Eurozone Economy Struggling as GDP Growth Revises Down to 0.0% in Q4 2022
The euro-area economy failed to expand in the fourth quarter of 2022, according to data released Wednesday by Eurostat, the statistical service of the European Union.[0] Gross domestic product (GDP) remained flat sequentially in the fourth quarter after expanding 0.4 percent in the preceding period.[1]
Greece achieved the highest growth rate in the eurozone in the fourth quarter of 2022, compared to the same period in 2021, with an increase of 5.9%.[2] Due to worse-than-expected performances in Germany and Ireland, initial growth readings were revised down.[3] On a quarterly basis, Greece took first place with an increase in GDP of 1.4%, followed by Malta (+1.2%) and Cyprus (+1.1%).[4] Poland had the greatest reduction in GDP (-2.4%), with Estonia (-1.6%) and Finland (-0.6%) following close behind.[5]
In 2021, both the euro area and the EU experienced a GDP growth of 5.3% and 5.4%, respectively. For the year 2022, this increase is estimated at 3.5% for both regions. Employment rose by 3.0% in Cyprus in the fourth quarter of 2022 (+1.5% in the euro area and +1.3% in the EU) compared with the same quarter of the previous year, while seasonally adjusted GDP was up by 4.5% (+1.8% in the euro area and +1.7% in the EU).
Sentiment about the eurozone economy had been more upbeat of late as many bad economic scenarios have been avoided, however, as more data comes in it is clear that the eurozone economy is struggling, with GDP growth revised down to 0.0% in the fourth quarter.[3] Overall, these figures show that the eurozone economy is still in a precarious position, and more policy measures may be needed to stimulate growth.[3]
0. “Euro Zone’s Economy Failed to Grow at End of Last Year” Yahoo Canada Finance, 8 Mar. 2023, https://ca.finance.yahoo.com/news/euro-zone-economy-failed-grow-100000418.html
1. “Eurozone Economy Stagnates In Q4” RTTNews, 8 Mar. 2023, https://www.rttnews.com/3349055/eurozone-economy-stagnates-in-q4.aspx
2. “GDP remains stable in euro area, dips 0.1% QoQ in EU for Q4 2022” Fibre2fashion.com, 10 Mar. 2023, https://www.fibre2fashion.com/news/textile-news/gdp-remains-stable-in-euro-area-dips-0-1-qoq-in-eu-for-q4-2022-286245-newsdetails.htm
3. “Stagnating Eurozone GDP Is Worse Than It Seems” Seeking Alpha, 8 Mar. 2023, https://seekingalpha.com/article/4585794-stagnating-eurozone-gdp-worse-than-it-seems
4. “Eurozone Economy Stagnated in 4Q, Lagging Earlier Estimate” MarketWatch, 8 Mar. 2023, https://www.marketwatch.com/story/eurozone-economy-stagnated-in-4q-lagging-earlier-estimate-c91665ea
5. “Greece 2nd in eurozone growth” Kathimerini English Edition, 9 Mar. 2023, https://www.ekathimerini.com/economy/1206268/greece-2nd-in-eurozone-growth/
