Euro Zone, European Union Q3 GDP Second Estimate Confirms Slowing Growth On The Continent

 @AmruthaGayathri
on December 04 2013 6:00 AM
EU flags
The European Union and other European flags flutter outside the European Council building, ahead of a European Union heads of state and governments summit, in Brussels June 16, 2005. Reuters

The euro zone clocked a quarterly growth of 0.1 percent in the third quarter of 2013, the same as a preliminary estimate published on Nov. 14, and lower than the 0.3 percent growth recorded in the second quarter, a second estimate published by Eurostat on Wednesday showed.

In the 28-member European Union, or EU, the gross domestic product, or GDP, grew 0.2 percent in the third quarter, on a quarter-on-quarter basis, also same as the earlier estimate, and lower than the 0.4 percent growth rate posted in the second quarter.

On a yearly basis, GDP fell by 0.4 percent in the euro zone, same as the previous estimate, and slightly better than a 0.6 percent decline in the second quarter. In the EU, GDP rose 0.1 percent, also same as previously estimated, and reversing a decline of 0.1 percent in the previous quarter.

Among EU member states for which data are available, Romania (1.6 percent) and Latvia (1.2 percent) recorded the highest growth compared with the previous quarter, followed by Hungary and the UK (both 0.8 percent). Cyprus (-0.8 percent), the Czech Republic (-0.5 percent), France and Italy (both -0.1 percent) recorded a contraction.

Meanwhile, retail sales in the euro zone fell by 0.2 percent in October, missing expectations of zero change, but better than a 0.6 percent drop in September. On a yearly basis, retail sales fell by 0.1 percent, widely missing a consensus figure of 0.9 percent growth, compared to a 0.3 percent growth in September, Eurostat data showed.

In the EU, retail sales dropped by 0.4 percent in October on a monthly basis, same as in September, and rose by 0.5 percent compared to the corresponding month in 2012.

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