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GDP down 3.8% and employment down 0.2% in the euro area

Christian Fernsby ▼ | May 18, 2020
<strong>GDP growth in the euro area and EU</strong>
Germany factory
Euro area   Germany factory
Seasonally adjusted GDP decreased by 3.8% in the euro area and by 3.3% in the EU during the first quarter of 2020, compared with the previous quarter, according to a flash estimate published by Eurostat.

Topics: GDP euro

These were the sharpest declines observed since time series started in 1995. In March 2020, the final month of the period covered, coronavirus containment measures began to be widely introduced by Member States. In the fourth quarter of 2019, GDP had grown by 0.1% in the euro area and by 0.2% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 3.2% in the euro area and by 2.6% in the EU in the first quarter of 2020, after +1.0% and +1.3% respectively in the previous quarter. These were the sharpest declines since the third quarter of 2009 (-4.5% for euro area and -4.4% for EU).

During the first quarter of 2020, GDP in the United States decreased by 1.2% compared with the previous quarter (after +0.5% in the fourth quarter of 2019). Compared with the same quarter of the previous year, GDP increased by 0.3% (after +2.3% in the previous quarter).

Employment growth in the euro area and EU

The number of employed persons decreased by 0.2% in both the euro area and the EU in the first quarter of 2020, compared with the previous quarter. This is the first decline in the time series since the second quarter of 2013 for the euro area and the first quarter of 2013 for the EU.

In the fourth quarter of 2019, employment had grown by 0.3% in both zones. Compared with the same quarter of the previous year, employment increased by 0.3% in both the euro area and the EU in the first quarter of 2020, after +1.1% and +1.0% respectively in the fourth quarter of 2019. These are the lowest growth rates since the first quarter of 2014 for the euro area and the fourth quarter of 2013 for the EU.

These data provide a picture of labour input consistent with the output and income measure of national accounts.

Euro area (EA19): Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

European Union (EU27): Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.


 

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