RSS
Eurostat: Romania and Malta recorded the sharpest increases of GDP în Q4/2020
GDP growth in the euro area and EU
In the fourth quarter of 2020, seasonally adjusted GDP decreased by 0.7% in the euro area and by 0.5% in the EU compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union.
These declines follow a strong rebound in the third quarter of 2020 (+12.5% in the euro area and +11.6% in the EU) and the sharpest decreases since the time series started in 1995 observed in the second quarter of 2020 (-11.6% in the euro area and -11.2% in the EU). For the year 2020 as a whole, GDP fell by 6.6% in the euro area and by 6.2% in the EU, after +1.3% and +1.6% respectively in 2019.
During the fourth quarter of 2020, GDP in the United States increased by 1.0% compared with the previous quarter (after +7.5% in the third quarter of 2020). Compared with the same quarter of the previous year, GDP decreased by 2.4% (after -2.8% in the previous quarter).
GDP growth by Member State
Romania (+4.8%) and Malta (+3.8%) recorded the sharpest increases of GDP compared to the previous quarter, followed by Croatia and Greece (both +2.7%). The strongest declines were observed in Ireland (-5.1%) and Austria (-2.7%) , followed by Italy (-1.9%) and France (-1.4%).
GDP components and contributions to growth
During the fourth quarter of 2020, household final consumption expenditure decreased by 3.0% in the euro area and by 2.8% in the EU (after +14.1% in the euro area and +13.3% in the EU in the previous quarter). Gross fixed capital formation increased by 1.6% in the euro area and by 1.3% in the EU (after +13.9% and +12.1% respectively).
Exports increased by 3.5% in the euro area and by 3.7% the EU (after +16.7% and +17.1%). Imports increased by 4.1% in the euro area and by 4.0% in the EU (after +11.8% and +12.6%).
Household final consumption expenditure had negative contribution to GDP growth in both the euro area and the EU (-1.6 and -1.5 percentage points – pp, respectively) while the contributions from gross fixed capital formation (+0.3 in both zones) and changes in inventories (+0.6% in both zones) were positive. The contribution from the external balance was slightly negative for the euro area and neutral for the EU, while the contributions from government final expenditure were slightly positive in both zones.
GDP levels in the euro area and EU
Based on seasonally adjusted figures, GDP volumes were 4.9% and 4.6% below their highest level of the fourth quarter 2019 for the euro area and EU, which is slightly above the levels of the fourth quarter 2016 for the euro area and the first quarter 2017 for the EU. For the United States, GDP was 2.4% below the level of the fourth quarter 2019, which is the lowest level since the third quarter 2018.
Employment growth in the euro area and EU
The number of employed persons increased by 0.3% in the euro area and by 0.4% in the EU in the fourth quarter of 2020, compared with the previous quarter. In the third quarter of 2020, employment had increased by 1.0% in the euro area and by 0.9% in the EU. For the year 2020 as a whole, employment decreased by 1.6% in the euro area and 1.5% in the EU, after +1.2% and +1.0% respectively in 2019.
Compared with the same quarter of the previous year, employment decreased by 1.9% in the euro area and by 1.6% in the EU in the fourth quarter of 2020, after -2.1% and -2.0% in the third quarter of 2020.
Hours worked decreased by 1.6% in the euro area and by 1.4% in the EU in the fourth quarter of 2020, compared with the previous quarter. Compared with the same quarter of the previous year the declines were 5.6% in the euro area and 4.6% in the EU respectively (see annex table on employment in hours worked). These data provide a picture of labour input consistent with the output and income measure of national accounts.
Employment growth in Member States
In the fourth quarter of 2020, Portugal, Estonia (both +1.9%) and Spain (+1.2%) recorded the highest growth of employment in persons compared with the previous quarter. The largest decreases were observed in Czechia, Croatia, Latvia and Malta (all -0.5%).
Employment levels in the euro area and EU
Based on seasonally adjusted figures, Eurostat estimates that in the fourth quarter of 2020, 206 million people were employed in the EU, of which 157.9 million were in the euro area. In relation to the COVID-19 pandemic, employment in persons was 3.1 million in the euro area and 3.5 million in the EU below the level of the fourth quarter of 2019.
Evolution of labour productivity in the euro area and EU
The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous year shows that productivity growth (based on employed persons) fluctuated around 1% for both zones between 2013 and 2018. In relation to the COVID-19 pandemic, productivity based on persons remained negative compared to the same quarter of the previous year with -3.0% for the euro area and -3.1% for the EU. Based on hours worked, productivity compared to the same quarter of the previous year increased by 1.6% for the euro area and to 0.7% for the EU.