EU’s GDP grew by 0.3% q/q in Q3

Compared to the same period in 2023, the indicator increased by 0.9%

The seasonally adjusted GDP of the European Union in the third quarter of 2024 grew by 0.3% compared to the previous quarter, when the bloc’s economy grew by 0.3%, according to Eurostat’s press release.

Compared to July-September 2023, EU GDP grew by 0.9%. At the same time, the eurozone economy grew by 0.4% q/q and 0.9% y/y during this period.

Among the EU member states, Ireland (+2%), Lithuania (+1.1%), and Spain (+0.8%) showed the highest quarterly GDP growth. The largest declines were recorded in Hungary (-0.7%), Latvia (-0.4%) and Sweden (-0.1%).

In annual comparison, the economies of Latvia fell at the fastest pace – by 1.4%, Hungary – by 0.7%, and Germany and Ireland – by 0.2% each. At the same time, the highest growth was recorded in Spain – by 3.4%, Lithuania – by 2.3% and Portugal – by 1.9%.

As GMK Center reported earlier, inflation in the eurozone increased by 1.8% in September 2024 compared to the same month in 2023. Thus, the indicator slowed down compared to August, when it was 2.2%.

In early fall, the European Central Bank cut all three key interest rates. The deposit rate was cut by 25 basis points to 3.5%. The main refinancing facility rate was cut to 3.65%, and the margin loan rate to 3.9%.

Consumer price growth is expected to accelerate by the end of the year, in particular due to a low comparison base, but by the second half of 2025, inflation will be at +2%.