March 08, 2023 10:02 GMT
GDP Revised Down 0.1pp to Flat Growth in Q4
EUROZONE Q4 GDP 0.0% (=FCST, VS +0.1% FLASH); Q3 +0.4% Q/Q
EUROZONE Q4 GDP +1.8% (FLASH +1.9%); Q3 +2.4% Y/Y
- The euro area stalled in the Q4 final GDP print, after GDP was downgraded by 0.1pp on both the Q/Q and Y/Y headline figures. This was largely in line with expectations following the 0.2pp downwards revision to German GDP.
- The component breakdown confirmed that private spending was particularly weak into year-end, as persistent inflationary pressures and weak consumer sentiment continue to reduce spending appetite.
- Q4 household final consumption expenditure fell -0.9% q/q, after +0.9% q/q in Q3, accounting for -0.4pp on the headline q/q GDP figure.
- Gross fixed capital formation represented the largest drag to Q4 GDP (-0.8pp). Gross fixed capital formation contracted by -3.6% q/q, but was largely just a reversal of the Q3 boost.
- Government spending rose +0.7% q/q, adding +0.2pp to headline GDP, whilst the external balance contributed +1.0pp to Q4 GDP.
- As such, this data implies the eurozone Q4 q/q print was largely propped up by lower imports and stronger government spending in Q4.
Contributions to growth over previous quarter:
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