Increased household spending propels Eurozone economy growth

In the first quarter of 2024, the eurozone economy grew by 0.3% compared to the previous quarter, according to the latest estimate published by Eurostat, the statistical office of the European Union. Eurostat also reported that the EU saw a 0.3% increase in its gross domestic product (GDP) quarter-on-quarter. In addition, when compared to the same quarter in 2023, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.5% in the EU.

By member state, Malta, Cyprus, and Croatia recorded the highest increases in GDP compared to the previous quarter, while decreases were observed in Denmark, Estonia, and the Netherlands. Household final consumption expenditure increased by 0.2% in both the euro area and the EU, while government final consumption expenditure remained stable in the euro area and increased by 0.1% in the EU. Gross fixed capital formation decreased by 1.5% in both regions, while exports increased and imports decreased.

The contribution to GDP growth came primarily from household final consumption expenditure, which was positive for both the euro area and the EU. Employment growth in both the eurozone and the EU increased by 0.3% in the first quarter of 2024 compared to the previous quarter. Eurostat reported a 1.0% increase in employment in the euro area and a 0.9% increase in the EU compared to the same quarter in the previous year.