In the second quarter of 2024, both the euro area and the European Union saw a modest increase in gross domestic product (GDP), with seasonally adjusted GDP rising by 0.2% in both regions compared to the previous quarter, according to Eurostat. This follows a 0.3% growth in the first quarter of 2024. Year-over-year, GDP increased by 0.6% in the euro area and 0.8% in the EU, reflecting gradual economic progress.
The United States, meanwhile, recorded a more significant GDP increase of 0.7% in the second quarter of 2024, with a 3.1% year-over-year growth. Among EU member states, Poland showed the strongest GDP growth at 1.5%, followed by Greece (1.1%) and the Netherlands (1.0%). On the other hand, Ireland, Latvia, and Austria experienced economic contractions.
GDP Components and Contributions to Growth
The components of GDP shifted slightly in the second quarter, with household consumption remaining stable in the euro area and growing slightly in the EU. Government expenditure rose by 0.6% in the euro area and 0.7% in the EU, while gross fixed capital formation fell by 2.2% in the euro area and 1.8% in the EU. Export growth outpaced import growth, contributing positively to GDP in both regions.
Employment Growth Remains Steady
Employment figures also showed modest improvement, with a 0.2% increase in the euro area and a 0.1% rise in the EU during the second quarter. Countries such as Ireland, Lithuania, and Estonia led employment growth, while Romania and Finland saw the sharpest declines. In terms of productivity, the euro area experienced a slight decline of 0.3% in labour productivity based on persons, while the EU remained stable.
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