Global| Mar 02 2005Euro-Zone GDP Grows 0.2% in Q4; Services, Construction, Agriculture Lead 2004 Gains
Summary
Eurostat today reported Euro-Zone GDP for Q4 2004. It grew 0.2% (1.0% annualized) in that quarter; this was marginally stronger than in Q3, which is also shown as 0.2%, but annualizes to 0.6%. Q4 was 1.6% ahead of the year-earlier [...]
Eurostat today reported Euro-Zone GDP for Q4 2004. It grew 0.2% (1.0% annualized) in that quarter; this was marginally stronger than in Q3, which is also shown as 0.2%, but annualizes to 0.6%. Q4 was 1.6% ahead of the year-earlier period and the year as a whole saw growth in the 12 countries of 1.8%. Both yearly growth rates were much improved over 2003, when Q4/Q4 was 0.8% and the overall year relative to 2002 was just 0.5%.
The growth improvement was spread across most expenditure segments. European consumers expanded their spending somewhat in Q4, relative to the performance in both Q3 and the year-ago quarter. Exports in the region picked-up considerably; so did imports, but on net, trade assisted growth in being a significantly smaller drag than it had been the year before. Investment firmed considerably. Among major components, only government consumption failed to accelerate, although it did continue to expand.
Several sectors contributed to Europe's growth. Value added in trade and transportation gained 2.6%, Q4/Q4, versus 0.4% in 2003. Construction activity expanded 0.8%, but it had contracted by 1% in 2003, again on a Q4/Q4 trend basis. Agriculture and related sectors surged 5.9%, a turnaround from a 2.0% contraction the prior year. Industry grew 1.2%, slightly ahead of 2003's 0.9%. However, industrial activity declined on a quarterly basis in both Q3 and Q4, leaving it on a weakening path as the year ended.
| Euro-Zone: GDP by Industry % Changes, SA data |
Q4 2004 | Q3 2004 | Q4/Q4 | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| GDP | 0.2 | 0.2 | 1.6 | 1.8 | 0.5 | 0.9 |
| Agriculture & Related | 0.5 | 0.9 | 5.9 | 5.0 | -3.5 | 0.5 |
| Industry | -0.6 | -0.1 | 1.2 | 2.2 | 0.2 | 0.4 |
| Construction | 0.3 | -0.7 | 0.8 | 0.8 | -1.5 | -1.2 |
| Trade, Transport, Communication | 0.2 | 0.5 | 2.6 | 2.4 | 0.4 | 1.2 |
| Finance & Real Estate | 0.4 | -0.1 | 1.5 | 1.5 | 1.3 | 0.8 |
| Other Services | 0.6 | 0.2 | 1.2 | 1.1 | 0.7 | 2.2 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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