In the second quarter of 2024, the GDP in the euro area and the European Union increased by 0.2% after seasonally adjusted data, compared to the previous quarter. This data is estimated according to reports from Eurostat, the statistical office of the European Union. In the first quarter of the same year, GDP grew by 0.3% in both areas. Also note that the report indicates a slight slowdown in growth compared to the first quarter, when growth was 0.1% higher.
In the second quarter of 2024, seasonally adjusted GDP rose by 0.2% in both the euro area and the European Union compared to the previous quarter. Eurostat, the statistical office of the European Union, has released these estimates. Compared to the same quarter of the previous year, GDP grew by 0.6% in the euro area and 0.8% in the European Union, after growth in the first quarter of the same year was 0.5% in the euro area and 0.7% in the European Union. Note that annual growth shows a significant increase, indicating continued economic performance despite a slight slowdown in the second quarter compared to the first quarter.
GDP growth in the United States: During the second quarter of 2024, GDP in the United States increased by 0.7% compared to the previous quarter, after growing by 0.4% in the first quarter of the same year. Compared to the same quarter last year, GDP increased by 3.1%, after an increase of 2.9% in the first quarter of 2024.
GDP growth by member states: Poland saw the highest increase in GDP among member states, with growth of 1.5% compared to the previous quarter. It was followed by Greece with an increase of 1.1% and the Netherlands with an increase of 1.0%. In contrast, Ireland recorded the largest decline in GDP with 1.0%, followed by Latvia with a decrease of 0.9% and Austria with a decrease of 0.4%.
GDP components and their contributions to growth
During Q2 2024, the components of GDP saw notable changes:
- Household final consumption expenditure fell by 0.1% in the euro area, while it rose by 0.1% in the EU, after increases of 0.3% in the euro area and 0.4% in the EU in the previous quarter.
- Government final consumption expenditure rose by 0.6% in the euro area and 0.7% in the EU, after increases of 0.1% in both areas in the previous quarter.
- Gross fixed capital formation fell by 2.2% in the euro area and 1.8% in the EU, after decreases of 1.8% and 1.7% respectively in the previous quarter.
- Exports rose by 1.4% in both the euro area and the EU, after increases of 1.1% in the euro area and 0.7% in the EU in the previous quarter.
- Imports increased by 0.5% in the euro area and 0.6% in the EU, following declines of 0.6% and 0.5% respectively in the previous quarter.
Final household consumption expenditure contributed little in the euro area and the EU, contributing 0.0 percentage points in both areas.
Final government expenditure contributed positively in both the euro area and the EU, contributing 0.1 percentage points in both areas.
Gross fixed capital formation contributed negatively to GDP growth, contributing -0.5 percentage points in the euro area and -0.4 percentage points in the EU.
Changes in inventories contributed little, contributing 0.0 percentage points in both the euro area and the EU.
Export growth, driven by an increase in the value of imports, contributed positively to GDP growth, with exports minus imports contributing 0.5 percentage points in the euro area and 0.4 percentage points in the EU.
Employment growth in the euro area and the EU
In the second quarter of 2024, the number of employed persons increased by 0.2% in the euro area and 0.1% in the EU compared to the previous quarter. In the first quarter of the same year, both areas saw an increase of 0.3% in employment. This slight slowdown in the second quarter compared to the first quarter shows a divergence in employment growth during the first half of the year. Compared to the same quarter of the previous year, employment rose by 0.8% in both the euro area and the EU in the second quarter of 2024, after +1.0% in the euro area and +0.9% in the EU in the first quarter of 2024. Working hours in the euro area and the EU: Working hours in the euro area increased by 0.2% and in the EU by 0.1% in the second quarter of 2024, compared to the previous quarter. Compared to the same quarter of the previous year, working hours increased by 1.4% in the euro area and 1.2% in the EU. These data reflect an increase in labour inputs in line with the output.
Employment growth in Member States: In the second quarter of 2024, Ireland and Lithuania, up by 1.1%, and Estonia, up by 0.8%, recorded the highest growth in employment compared to the previous quarter. In contrast, Romania and Finland saw employment declines of -0.5% and -0.4% respectively.
Employment levels in the euro area and the EU: Based on seasonally adjusted figures, Eurostat estimates that in the second quarter of 2024, 218.6 million people were employed in the EU, of whom 170.1 million were in the euro area
Labour productivity developments in the euro area and the EU: Combining GDP data with employment data allows for an estimate of labour productivity. In the second quarter of 2024.
