Economy 6 December 2024, 12:37pm

Hungary had the sharpest quarterly GDP contraction in the EU

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With a quarter-on-quarter GDP contraction of 0.7%, Hungary was the weakest performer among EU countries in the third quarter of 2024, according to a report published on Friday by Eurostat, the statistical office of the European Union. which takes stock of the EU's overall economic performance.

Magyarország-építőipar-növekedés-gdp-növekedés-fogyasztás-ipar-gazdaság

In Q3 this year, seasonally adjusted GDP increased by 0.4% both in the euro area and in the EU, compared with the previous quarter, according to an estimate published by Eurostat today. In the second quarter of 2024, GDP had grown by 0.2% in both zones.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.9% in the euro area and by 1.0% in the EU in the third quarter of 2024, after +0.5% in the euro area and +0.8% in the EU in the previous quarter.

Ireland (+3.5%) recorded the highest increase of GDP compared to the previous quarter, followed by Denmark and Lithuania (both +1.2%).

The highest decreases were observed in Hungary (-0.7%) and Latvia (-0.2%).

GDP components evolved in the third quarter of 2024 as follows:

household final consumption expenditure increased by 0.7% in the euro area and by 0.6% in the EU (after 0.0% in the euro area and +0.1% in the EU in the previous quarter),

government final consumption expenditure increased by 0.5% in both the euro area and the EU (after +1.2% in the euro area and +1.1% in the EU in the previous quarter),
gross fixed capital formation increased by 2.0% in the euro area and by 1.0% the EU (after -2.4% and -2.1% respectively),

exports decreased by 1.5% in the euro area and by 1.2% in the EU (after +1.5% in both areas), and

imports increased by 0.2% in the euro area and by 0.3% in the EU (after +1.1% in both areas).

The contribution to GDP growth from:

household final consumption expenditure was positive for both the euro area (+0.4 percentage points – pp) and the EU (+0.3 pp),
government final expenditure was positive for both the euro area and the EU (+0.1 pp for both),
gross fixed capital formation was positive for both the euro area (+0.4 pp) and the EU (+0.2 pp),
changes in inventories was positive for both the euro area (+0.4 pp) and the EU (+0.5 pp), and
exports less imports was negative for both the euro area (-0.9 pp) and the EU (-0.7 pp).