Blog Post

Chart of the week: GDP down by 0.2% in the euro area

August figures from Eurostat for the euro area show a decrease in GDP for the second quarter of 2012, after stagnating growth rates during the previous three months. While countries such as Austria, Germany and Slovakia have managed to catch up with pre-crisis GDP levels, Greece, Italy and Portugal still struggle with a GDP far below levels in 2007.

By: Date: August 17, 2012 Topic: European Macroeconomics & Governance

Eurostat’s estimates of GDP growth for the second quarter of 2012 provide a rather gloomy picture of the current economic situation in Europe. Seasonally adjusted GDP fell by 0.2% both in the euro area and the EU27 in the second quarter of 2012, after close to zero growth rates in the previous quarter. The best performing countries are in Northern Europe; with Austria, Germany, Finland and Sweden all showing positive annual year-on-year GDP growth rates.  The Baltic countries continue to perform well  with respect to the rest of the EU, with an annual year-on-year increase close to 4.3% in the case of Latvia, albeit the growth of their economies are slowing down compared to the end of last year. The most noticeable contraction was in Greece, where annual real GDP fell by 6.2% between the second quarter 2012 and the same period the previous year.[1]

The United States and Japan both experienced a positive annual year-on-year growth of 2.2% and 3.6% respectively. Japan also registered its fourth consecutive quarter of positive GDP growth.

How are the recent figures situated compared to GDP levels ex ante the financial crisis? 

The chart above depicts variations in real GDP between the second quarter of 2007 and the second quarter of 2012. While the euro area average is close to zero, large discrepancies exist between the 17 Member States. Greece, Italy, Ireland and Portugal all experienced output drops towards the end of 2008 or beginning of 2009, and have been on a downward slope since then.  In France, real GDP for the second quarter of 2012 is only back to the 2007 level. Slovakia and Poland, on the other hand, outperformed with a GDP increase close to 13.5% and 19.3% respectively over the five-year period. 

While the 2012 GDP levels in the United States have come to surpass those for the same quarter in 2007, Japan still faces the challenge of catching up with pre-crisis output levels with a GDP for the second quarter of 2012 one percentage lower than the same quarter in 2007.


[1] In the case of Greece, Eurostat data for year-on year variations are calculated from non-seasonally adjusted data.


Republishing and referencing

Bruegel considers itself a public good and takes no institutional standpoint. Anyone is free to republish and/or quote this post without prior consent. Please provide a full reference, clearly stating Bruegel and the relevant author as the source, and include a prominent hyperlink to the original post.

Read article
 

Blog Post

Will European Union recovery spending be enough to fill digital investment gaps?

The recovery facility will boost digital transformation, but questions remain whether it will be sufficient to achieve Europe’s digital ambitions.

By: Zsolt Darvas, J. Scott Marcus and Alkiviadis Tzaras Topic: European Macroeconomics & Governance, Innovation & Competition Policy Date: July 20, 2021
Read about event More on this topic
 

Upcoming Event

Sep
1
12:30

The EU recovery fund - state of play and outlook

Bruegel Annual Meetings, Day 1- In this session we will discuss the EU recovery fund, its state of play and outlook.

Speakers: Nadia Calviño, Karolina Ekholm and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic
 

Upcoming Event

Sep
2
10:00

Conversation on the recovery programmes

Bruegel Annual Meetings, Day 2- In this session, we discuss the recovery programmes.

Speakers: Maria Demertzis and Tadeusz Kościński Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1
Read about event
 

Upcoming Event

Sep
2
13:00

European banks: under global competitive pressure?

Bruegel Annual Meetings, Day 2 - European banks have lost stature and remain generally low-profitability, low-valuation in comparison to their global peers. Is that a problem? If so, what can EU policymakers do to address it?

Speakers: José Antonio Álvarez Álvarez, Mairead McGuinness and Nicolas Véron Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Palais des Academies, Rue Ducale 1
Read about event More on this topic
 

Upcoming Event

Sep
2
15:45

Blending physical and virtual: shaping the new workplace

Bruegel Annual Meetings, Day 2 - This panel will cover the changes the COVID-19 pandemic made to our workplaces, and what to expect in the near future.

Speakers: Nicholas Bloom, Michael Froman, Mario Mariniello, Sara Matthieu and Luca Visentini Topic: European Macroeconomics & Governance Location: Academy Palace
Read about event More on this topic
 

Upcoming Event

Sep
3
09:00

The role of the EU's trade strategy for an inclusive and sustainable recovery

Bruegel Annual Meetings, Day 3 - We are delighted to welcome Valdis Dombrovskis, Executive Vice President of the European Commission for An Economy that Works for People to talk about Europe's trade strategy.

Speakers: Valdis Dombrovskis, Alicia García-Herrero and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1
Read about event More on this topic
 

Upcoming Event

Sep
3
10:15

Conference on the Future of Europe: envisioning EU citizens engagement

Bruegel Annual Meetings, Day 3 - Panellists will discuss different options and what they may entail while revisiting the debates on the future of Europe at national and EU-level that have been conducted thus far.

Speakers: Caroline de Gruyter, Kalypso Nicolaïdis, Niclas Poitiers and György Szapáry Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1
Read article Download PDF
 

Policy Contribution

A new direction for the European Union’s half-hearted semiconductor strategy

The EU needs a more targeted strategy to increase its presence in this strategic and thriving sector, building on its existing strengths, while accommodating its relatively low domestic needs.

By: Niclas Poitiers and Pauline Weil Topic: European Macroeconomics & Governance, Innovation & Competition Policy Date: July 15, 2021
Read article More by this author
 

Blog Post

Fit for 55 marks Europe’s climate moment of truth

With Fit for 55, Europe is the global first mover in turning a long-term net-zero goal into real-world policies, marking the entry of climate policy into the daily life of all citizens and businesses.

By: Simone Tagliapietra Topic: Energy & Climate, European Macroeconomics & Governance Date: July 14, 2021
Read article More on this topic
 

Blog Post

Fair vaccine access is a goal Europe cannot afford to miss – July update

European countries must do more to tackle the vaccine uptake gap. Vaccination data should be published at the maximum granularity level so researchers and local decision-makers can monitor progress.

By: Lionel Guetta-Jeanrenaud and Mario Mariniello Topic: European Macroeconomics & Governance Date: July 14, 2021
Read article More by this author
 

Blog Post

SPACs in the gap

Special-purpose acquisition vehicles could fill a gap in European equity markets and lure risk-averse investors off the sidelines.

By: Rebecca Christie Topic: European Macroeconomics & Governance, Finance & Financial Regulation Date: July 13, 2021
Read article More on this topic
 

Blog Post

A breakdown of EU countries’ post-pandemic green spending plans

An analysis of European Union countries’ recovery plans shows widely differing green spending priorities.

By: Klaas Lenaerts and Simone Tagliapietra Topic: European Macroeconomics & Governance Date: July 8, 2021
Load more posts