Greece 2nd in eurozone growth

Fourth-quarter GDP data show that economy performed three times as fast as euro area

Greece 2nd in eurozone growth

Greece achieved the second highest growth rate in the eurozone in the fourth quarter of 2022, compared to the same period in 2021, according to data published by Eurostat on Wednesday.

However, the composition of the Greek gross domestic product remains qualitatively disadvantaged compared to that of the eurozone, as consumption remains a key driver. The increase in investments is recorded on the positive side and the deterioration of the external balance on the negative side.

Against a GDP increase of 1.8% in the eurozone and 1.7% in the whole of the European Union in October-December 2022, year-on-year, the Greek economy expanded 5.2%, second only to Ireland’s rate (13.1%). They are followed by Romania with 4.9% and Malta with 4.7%. Estonia had the worst performance, with a contraction of 4.4%.

Compared to the previous quarter, eurozone GDP in the fourth quarter decreased by 0.1%, while in the EU as a whole it remained stable. In this comparison, on a quarterly basis, Greece took first place, with an increase in GDP of 1.4%, followed by Malta (+1.2%) and Cyprus (+1.1%). On the contrary, Poland had the biggest decrease in GDP (-2.4%), followed by Estonia (-1.6%) and Finland (-0.6%).

Overall, in 2022 GDP increased by 3.5% in both the eurozone and the European Union, after an increase of 5.3% and 5.1% respectively in 2021. In Greece, in 2022 ELSTAT announced that the increase of GDP was 5.9%, after the previous year’s 8.4%.

The contribution of household consumption to the growth of the eurozone GDP in Q4 (compared to the same quarter of 2021) was positive, but only by +0.6 percentage points. Figures for Greece show that the contribution of household consumption to GDP growth was significantly higher, +2.9%. The contribution of government consumption was positive, +0.1 percentage points in the eurozone, while in Greece it was negative at -0.3%.

The contribution of investments, as expressed by gross fixed capital formation, in the eurozone was +0.1%, while in Greece it was +2%. 

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