Eurozone Economy Struggles as GDP Growth Revised Down to 0.0% in Q4 2022
The euro-area economy failed to expand in the fourth quarter of 2022, according to the latest data released by Eurostat, the statistical service of the EU.[0] The initial growth reading was revised down to 0% due to weaker-than-expected performances in Germany and Ireland.[1] This marks a slowdown in the economic performance of the euro-area compared to the previous quarter when GDP grew by 0.4%.
Greece was the highest performer in the fourth quarter of 2022, with an increase of 1.4% in its gross domestic product (GDP) compared to the previous quarter, followed by Malta (+1.2%), Cyprus (+1.1%) and Romania (+1.1%). On the other hand, Poland had the biggest decrease in GDP (-2.4%), followed by Estonia (-1.6%) and Finland (-0.6%).[2]
On an annual basis, the European Union’s economy grew by 1.7 percent in the last three months of 2022, 0.1 percentage point lower than previous Eurostat estimates showed.[3] Both the euro area and the EU saw their GDPs increase by 3.5% in 2022, following a growth of 5.3% and 5.4% respectively in 2021.
In 2021, both the eurozone and the European Union experienced a 5.3% and 5.1% increase in GDP respectively. This number was smaller, yet still positive, in 2022 with a 3.5% increase in both areas. In 2022, ELSTAT in Greece declared that GDP had risen by 5.9%, following an 8.4% increase the year before.[2]
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), after growing 3.1% in the third quarter of 2022 (+1.8% in the euro area and +1.5% in the EU).
Recently, sentiment regarding the economy in the eurozone has become more optimistic as a result of the avoidance of many unfavorable economic outcomes.[1] It has become evident, as more data has been collected, that the economy of the eurozone is facing difficulties; with GDP growth being lowered to 0.0% in the fourth quarter. When we take a closer look at the GDP release, a more worrisome situation is exposed.[1]
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. “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
2. “Greece 2nd in eurozone growth” Kathimerini English Edition, 9 Mar. 2023, https://www.ekathimerini.com/economy/1206268/greece-2nd-in-eurozone-growth/
3. “Croatian fourth quarter 2022 GDP growth one of highest in European Union” The Dubrovnik Times, 9 Mar. 2023, https://www.thedubrovniktimes.com/news/croatia/item/14630-croatian-fourth-quarter-2022-gdp-growth-one-of-highest-in-european-union
