EU GDP grows by 0.3% QoQ in second quarter of 2023

July 31, 2023 (MLN): The Euro area gross domestic product (GDP) went up by 0.3% QoQ, as compared to a contraction of 0.1% QoQ in the previous quarter, Eurostat's provisional figures revealed on Monday.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.6% in the euro area and by 0.5% in the EU in the second quarter of 2023, after +1.1% in both zones in the previous quarter.

Among the Member States for which data are available for the second quarter of 2023, Ireland (+3.3%) recorded the highest increase compared to the previous quarter, followed by Lithuania (+2.8%). Declines were recorded in Sweden (-1.5%), in Latvia (-0.6%), in Austria (-0.4%) and in Italy (-0.3%).

The growth rates compared to the same quarter of the previous year were positive for seven countries, with the highest values observed for Ireland (+2.8%), Portugal (+2.3%) and Spain (+1.8%). The highest declines were recorded for Sweden (-2.4%), Czechia (-0.6%) and Latvia (-0.5%).

Euro area annual inflation is expected to be 5.3% in July 2023, down from 5.5% in June according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in July (10.8%, compared with 11.6% in June), followed by services (5.6%, compared with 5.4% in June), non-energy industrial goods (5.0%, compared with 5.5% in June) and energy (-6.1%, compared with -5.6% in June).

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