John Meyer, financial consultant – Eurasia Business News, December 12, 2021
View on a residential building under construction in Paris, France, 2021. The construction of housing units is usually seen as a good indicator of the GDP growth. Photo credits : Eurasia Business News.
In the third quarter of 2021, seasonally adjusted GDP grew by 2.2% in the euro area and by 2.1% in the EU compared to the previous quarter, according to the estimate released by Eurostat, the statistical office of the European Union.
In the U.S., GDP increased at an annual rate of 2.0 % in Q3 2021 according to the “advance” estimate released by the U.S. Bureau of Economic Analysis. In Q2 2021, real GDP increased 6.7 %.
Compared with the same quarter of the previous year, seasonally adjusted GDP grew by 3.9% in the euro area and by 4.1% in the EU in the third quarter of 2021, after + 14.4% in the euro area and 13.8% in the EU in the second quarter of 2021.
In the third quarter of 2021, the GDP of the United States increased by 0.5% compared to the previous quarter (after + 1.6% in the second quarter of 2021). Compared to the same quarter of the previous year, GDP increased by 4.9% (after + 12.2% in the previous quarter).
GDP growth according to Member States
Austria (+ 3.8%) recorded the largest increase in GDP compared to Q2 2021, followed by France (+ 3.0%) and Portugal (+ 2.9%). The smallest increases were recorded in Romania and Slovakia (+ 0.4%), while GDP remained stable in Lithuania (0.0%).
Components of GDP and contributions to growth
During Q3 2021, household final consumption expenditure increased by 4.1% in the euro area and by 4.0% in the EU (after + 3.9% in the euro area and +3, 7% in the EU in the previous quarter).
General government final consumption expenditure increased by 0.3% in both zones (after + 2.1% in the euro zone and + 1.9% in the EU in the previous quarter). Gross fixed capital formation fell by 0.9% in the euro area and 0.6% in the EU (after + 1.3% in the euro area and + 1.0% in the EU, respectively). Exports increased by 1.2% in the euro area and by 1.0% in the EU (after + 2.4% and + 2.0). Imports increased by 0.7% in both zones (after + 2.9% and + 2.8%).
The contribution of household final consumption expenditure to GDP growth has been strongly positive in both the euro area and the EU (+2.1 and +2.0 percentage points – pp – respectively). The contributions of general government final consumption expenditure were positive (+0.1 pp in the two zones), but negative for gross fixed capital formation (-0.2 pp in the euro zone and -0.1 for the EU). The contributions from foreign trade were positive for both zones, while the contribution from changes in inventories was slightly negative for the euro zone and neutral for the EU.
GDP levels in the euro area and in the EU
Based on seasonally adjusted data, GDP volumes for the euro area and the EU were still 0.3% and 0.1% below their level in the fourth quarter of 2019.
For the United States, GDP was 1.4% above its level in the fourth quarter of 2019.
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