The final data published by Eurostat showed that in the first quarter the economy grew by 0.6%, accelerating compared to the fourth quarter (+0.3%, revised from +0.2%), and exceeding the preliminary estimate (+0.3%). This was the strongest GDP growth since the third quarter of 2022. Economists expected the economy to expand by 0.4%. The GDP of the EU countries also increased by 0.6% after growing by 0.4% in the fourth quarter.
In annual terms, the eurozone economy grew by 1.5% (strongest growth since Q4 2022) after an increase of 1.2% in the fourth quarter, while the EU GDP grew by 1.6% after growing by 1.4%.
Ireland (+9.7%) recorded the highest increase of GDP compared to the previous quarter, followed by Malta (+2.1%) and Cyprus (+1.3%). The highest decreases were observed in Luxembourg (-1.0%), Slovenia (-0.8%), Denmark and Portugal (both -0.5%).
The data also showed that in the first quarter household final consumption expenditure increased by 0.2% in the eurozone and by 0.2% in the EU (after +0.5% in the eurozone and +0.6% in the EU in the previous quarter). Government final consumption expenditure remained stable in the eurozone and decreased by 0.1% in the EU (after +0.4% and +0.5% respectively in the previous quarter), while gross fixed capital formation increased by 1.8% in both the eurozone and the EU (after +0.7% and +0.6% respectively). Exports increased by 1.9% in the eurozone and by 1.6% in the EU (after 0.0% and +0.1% respectively), and imports increased by 1.4% in both the eurozone and the EU (after -0.1% in both areas).