According to the preliminary report from Eurostat, in the 1st quarter, the eurozone economy expanded by 0.3% (the strongest growth since the 3rd quarter of 2022) after shrinking by 0.1% in the 4th quarter of 2023 (revised from 0%). Economists had expected GDP to grow by 0.1%. As for the European Union countries, GDP also increased by 0.3% after remaining unchanged in the previous quarter.
In annual terms, the growth of the eurozone economy accelerated to 0.4% from 0.1% in the 4th quarter, while consensus estimates suggested that GDP would grow by 0.2%. Meanwhile, the GDP of the European Union countries grew by 0.5% after an increase of 0.2% in the 4th quarter.
Eurostat said that among EU countries, Ireland (+1.1%) recorded the highest increase compared to the previous quarter, followed by Latvia, Lithuania and Hungary (all +0.8%). Sweden (-0.1%) was the only Member State that recorded a decrease compared to the previous quarter. The year on year growth rates were positive for nine countries and negative for four.
The latest survey of professional forecasters (SPF) showed that respondents expected real GDP growth of 0.5% in 2024, 1.4% in 2025 and 1.4% in 2026. The expectations for 2024 and 2025 were revised down and up by 0.1% respectively, while those for 2026 were unchanged. Respondents’ short-term GDP outlook was for a gradual strengthening of economic activity through 2024, while longer-term growth expectations remained unchanged at 1.3%.