Quarterly national accounts – GDP and employment

Quarterly GDP growth

GDP down by 0.1 % in the euro area and stable in the EU

According to an estimate (see Data sources below) published by Eurostat, GDP decreased by 0.1 % in the euro area and remained stable in the EU in the fourth quarter of 2023, compared with the previous quarter. In the third quarter of 2023, GDP had decreased by 0.1 % in the euro area and had remained stable in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.1 % in the euro area and by 0.2 % in the EU in the fourth quarter of 2023, after an increase of 0.1 % in both zones in the previous quarter.

During the fourth quarter of 2023, GDP in the United States increased by 0.8 % compared with the previous quarter (after +1.2 % in the third quarter of 2023). Compared with the same quarter of the previous year, GDP increased by 3.1 % (after +2.9 % in the previous quarter).

GDP growth by Member State

Among the EU Member States, the highest increases of GDP were recorded in Denmark (+2.6 %), Croatia (+1.3 %) and Slovenia (+1.1 %) in the fourth quarter of 2023, while the highest decreases were observed in Ireland (-3.4 %), Finland (-0.8 %) and Estonia (-0.7 %).

Figure 1: GDP growth rates (%, change over the previous quarter, based on seasonally adjusted data, 2023Q4)
Source: Eurostat (namq_10_gdp)

GDP components and contributions to growth

During the fourth quarter of 2023, household final consumption expenditure increased by 0.1 % in the euro area and by 0.2 % in the EU (after +0.3 % in both zones in the previous quarter). Government final consumption expenditure increased by 0.5 % in the euro area and by 0.4 % in the EU (after +0.7 % and +0.6 % respectively, in the previous quarter). Gross fixed capital formation increased by 1.0 % in the euro area and by 0.9 % in the EU (after 0.0 % in the euro area and +0.1 % in the EU in the previous quarter). Exports remained stable in the euro area and increased by 0.9 % in the EU (after -1.2 % in the euro area and -1.1 % in the EU in the previous quarter). Imports increased by 0.6 % in the euro area and by 1.3 % in the EU (after -1.4 % in the euro area and -1.6 % in the EU in the previous quarter).

Household final consumption expenditure had a negligible contribution to GDP growth in the euro area and was positive in the EU (+0.1 percentage points (pp)). The contribution from government final expenditure was positive in both zones (+0.1 pp). The contribution of gross fixed capital formation was positive for both the euro area and the EU (+0.2 pp). Changes in inventories had negative contributions to GDP growth both in the euro area (-0.1 pp) and in the EU (-0.2 pp). The contribution of exports less imports was negative both for the euro area and for the EU (-0.3 pp and -0.2 pp respectively).

Figure 2: Decomposition of GDP growth by expenditure aggregates (contributions to growth (over the previous quarter) in percentage points, 2023Q1 – 2023Q4)
Source: Eurostat Eurostat (namq_10_gdp)

Quarterly employment growth

Number of employed persons up by 0.3 % in the euro area and up by 0.2 % in the EU

The number of persons employed increased by 0.3 % in the euro area and by 0.2 % in the EU in the fourth quarter of 2023 compared with the previous quarter. In the third quarter of 2023, employment had increased by 0.2 % in both the euro area and the EU. Hours worked increased by 0.2 % in the euro area and by 0.3 % in the EU in the fourth quarter of 2023 (after 0.0 % in both zones, in the third quarter of 2023).

Compared with the same quarter of the previous year, employment based on persons increased by 1.2 % in the euro area and by 1.0 % in the EU in the fourth quarter of 2023 (after +1.4 % in the euro area and +1.2 % in the EU in the third quarter of 2023). Number of hours worked increased by 0.8 % in the euro area and by 0.5 % in the EU in the fourth quarter of 2023, compared with the same quarter of the previous year (after +0.9 % and +0.7 % respectively in the third quarter of 2023).

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

Table 2: Growth rates of employment in persons (¹) (%)
Source: Eurostat (namq_10_a10_e)

Employment growth by Member State

Among EU Member States, the highest increases in employment in persons were observed in Romania (+1.5 %), Malta (+1.4 %) and Spain (+0.8 %). Latvia (-1.0 %), Finland (-0.6 %) and Poland (-0.2 %) recorded the highest declines in the fourth quarter of 2023 compared with the previous quarter.

Greece (+4.7 %), Malta (+2.0 %) and Czechia (+1.6 %) exhibited the highest increases in employment measured in hours worked. Estonia (-2.0 %), Portugal (-1.5 %), Germany, Austria and Finland (all -0.9 %) showed the highest decreases in the fourth quarter of 2023 compared with the previous quarter.

Figure 4: Employment growth rates (%, change over the previous quarter, based on seasonally adjusted data, 2023Q4)
Source: Eurostat (namq_10_a10_e)

Employment levels

Employment in persons increased by 0.5 million in the euro area and in the EU

Based on seasonally adjusted figures, Eurostat estimates that in the fourth quarter of 2023, 217.2 million people were employed in the EU, of whom 169.3 million were in the euro area.

Figure 5: Evolution of employment in persons and hours worked (index 2015=100, based on seasonally adjusted data, 2008Q1 – 2023Q4)
Source: Eurostat (namq_10_a10_e)

Labour productivity

The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared with 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 before the COVID-19 pandemic caused high volatility in 2020.

In the fourth quarter of 2023, productivity based on persons decreased by 1.1 % in the euro area and by 0.8 % in the EU compared with the same quarter of the previous year.

Compared with the same quarter of the previous year, productivity based on hours worked decreased by 1.2 % in the euro area and by 0.7 % in the EU.

Figure 6: Labour productivity growth rates, (%, change over same quarter of the previous year, based on seasonally adjusted data, 2008Q1 – 2023Q4)
Source: Eurostat (namq_10_lp_ulc)