GDP up by 0.2% and employment up by 0.2% in the euro area in the second quarter 2019

Seasonally adjusted GDP rose by 0.2% in both the euro area (EA19) and the EU28 during the second quarter of 2019, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2019, GDP had grown by 0.4% in the euro area and by 0.5% in the EU28.

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.2% in the euro area and by 1.4% in the EU28 in the second quarter of 2019, after +1.3% and +1.6% respectively in the previous quarter.

During the second quarter of 2019, GDP in the United States increased by 0.5% compared with the previous quarter (after +0.8% in the first quarter of 2019). Compared with the same quarter of the previous year, GDP grew by 2.3% (after +2.7% in the previous quarter).

GDP by Member State

Among Member States for which data are available for the second quarter of 2019, Hungary (+1.1%) recorded the highest growth compared with the previous quarter, followed by Romania (+1.0%) and Bulgaria, Denmark, Greece, Cyprus, Lithuania and Poland (all +0.8%).

Decreases were observed in the United Kingdom (-0.2%), Germany and Sweden (both -0.1%), while in Italy, stagnation was observed.

Employment growth

The number of persons employed increased by 0.2% in the euro area and by 0.3% in the EU28 in the second quarter of 2019 compared with the previous quarter. In the first quarter of 2019, employment increased by 0.4% in the euro area and by 0.3% in the EU28.

Compared with the same quarter of the previous year, employment increased by 1.2% in the euro area and by 1.0% in the EU28 in the second quarter of 2019 (after +1.4% and +1.2% respectively in the first quarter of 2019).

These data on employment provide a picture of labour input consistent with the output and income measure of national accounts

The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous years shows that productivity growth (based on employed persons) fluctuated around 1% for both zones between 2013 and 2018.

Following a decline, productivity growth was stable in the second quarter of 2019 for the euro area and slightly positive for the EU28

Consumption

During the second quarter of 2019, household final consumption expenditure rose by 0.2% in the euro area and by 0.3% in the EU28 (after +0.4% in both zones in the previous quarter). Gross fixed capital formation increased by 0.5% in the euro area and by 0.4% in the EU28 (after +0.2% and +0.5% respectively). Exports did not change in the euro area and decreased by 0.3% in the EU28 (after +0.9% in both zones).

Imports increased by 0.2% in the euro area and decreased by 1.4% in the EU28 (after +0.4% and +1.6%).

Household final consumption expenditure had a positive contribution to GDP growth in both the euro area and the EU28 (+0.1 and +0.2 percentage points – pp – respectively) and the contribution from gross fixed capital formation was also positive (+0.1 pp in both zones).

The contribution of the external balance to GDP growth was negative for the euro area and positive for the EU28, while the contribution of changes in inventories was negligible for the euro area (0.0 pp) and negative for the EU28 (-0.6 pp).