In the third quarter of 2013, GDP grew by 0.1% in the euro area and by 0.3% in the EU28. Cyprus showed the biggest deceleration in GDP with a negative growth of -1.0% in the fourth quarter, following a -1.1%, -1.7% and -1.6% negative growth in the third, second and first quarters of 2013. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.5% in the euro area and by 1.1% in the EU28 in the fourth quarter of 2013, after -0.3% and +0.2%, respectively in the previous quarter.

During the fourth quarter of 2013, GDP in the United States grew by 0.8% compared with the previous quarter (after +1.0% in the third quarter of 2013). Compared with the same quarter of the previous year, GDP rose by 2.7% (after +2.0% in the previous quarter). Over the whole year 2013, GDP fell by 0.5% in the euro area and rose by 0.1% in the EU28.

Among member states for which data are available for the fourth quarter of 2013, Sweden (+1.7%), the Czech Republic (+1.6%), Romania (+1.5%), Lithuania and Slovenia (both +1.2%) recorded the highest growth compared with the previous quarter. Cyprus (-1.0%), Denmark (-0.5%), Finland (-0.3%) and Estonia (-0.1%) registered decreases.

Eurostat said that during the fourth quarter of 2013, household final consumption expenditure rose by 0.1% in the euro area and by 0.2% in the EU28 (after +0.1% and +0.3% respectively in the previous quarter). Gross fixed capital formation increased by 1.1% in the euro area and by 1.4% in the EU28 (after +0.6% and +0.7%). Exports rose by 1.2% in the euro area and by 1.1% in the EU28 (after 0.0% and -0.1%). Imports increased by 0.4% in the euro area and by 0.2% in the EU28 (after +1.0% and +1.1%).

Household final consumption expenditure had a positive contribution to GDP growth (+0.1 percentage points) both in the euro area and the EU28. The contribution of gross fixed capital formation was also positive in both the euro area and in the EU28 (+0.2pp for both zones) as was the external balance (+0.4pp for both zones). The contribution of changes in inventories was negative (-0.3pp for both zones).

Source: Financial Mirror