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Eurozone GDP growth slows on consumption, export

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Christian Fernsby ▼ | March 10, 2020
The euro area economy expanded at a slower pace as initially estimated at the end of 2019 driven by weaker consumption and exports, a revised estimate published by Eurostat revealed today.
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Gross domestic product in the 19 nation bloc grew only 0.1 percent sequentially in the fourth quarter, following third quarter's 0.3 percent expansion. The rate matched the estimate published on February 14.

Topics: Eurozone GDP

On a yearly basis, economic growth eased to 1 percent from 1.3 percent in the third quarter. The fourth quarter growth was revised up from 0.9 percent.

The expenditure-side breakdown of GDP showed that sequential growth was largely underpinned by gross fixed capital formation in the fourth quarter.

Household spending growth slowed to 0.1 percent from 0.5 percent. Likewise, growth in government spending halved to 0.3 percent from 0.6 percent.

Meanwhile, gross fixed capital formation advanced 4.2 percent, in contrast to a 3.8 percent drop a quarter ago.

Exports gained 0.4 percent, following a 0.6 percent rise in the third quarter. On the other hand, imports grew 2.2 percent, reversing a 1.3 percent drop in the preceding quarter.

Among big four economies, only Spain logged a faster growth of 0.5 percent in the fourth quarter. Germany's economy stagnated, while France and Italy contracted 0.1 percent and 0.3 percent, respectively.