In the fourth quarter of 2022, seasonally adjusted GDP remained stable in the euro area and decreased by 0.1% in the EU, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the third quarter of 2022, GDP had grown by 0.4% in both the euro area and in the EU. Compared with the same quarter of the previous year,

seasonally adjusted GDP increased by 1.8% in the euro area and by 1.7% in the EU in the fourth quarter of 2022, after +2.4% in the euro area and +2.6% in the EU in the previous quarter.

For the year 2022 as a whole, GDP increased by 3.5% in both the euro area and the EU, after +5.3% and +5.4% respectively in 2021. During the fourth quarter of 2022, GDP in the United States increased by 0.7% compared to the previous quarter (after +0.8% in the third quarter of 2022). Compared with the same quarter of the previous year, GDP increased by 0.9% (after +1.9% in the previous quarter).

GDP growth by Member State.       Greece (+1.4%) recorded the highest increase of GDP compared to the previous quarter, followed by Malta (+1.2%) and Cyprus (+1.1%). The highest decreases were observed in Poland (-2.4%), Estonia (-1.6%) and Finland (-0.6%).

GDP components and contributions to growth.      During the fourth quarter of 2022, household final consumption expenditure decreased by 0.9% in the euro area and by 0.8% in the EU (after +0.9% in the euro area and +0.7% in the EU in the previous quarter). Government final consumption expenditure increased by 0.7% in both the euro area and the EU (after -0.2% in both zones in the previous quarter). Gross fixed capital formation decreased by 3.6% in the euro area and by 2.8% in the EU (after +3.9% and +3.5% respectively). Exports increased by 0.1% in the euro area and remained stable in the EU (after +1.7% and +1.9%). Imports decreased by 1.9% in both the euro area and the EU (after +4.2% and +3.9% in the previous quarter).

Household final consumption expenditure had negative contributions to GDP growth in both the euro area and the EU (-0.4 percentage points – pp in both zones). The contributions from government final expenditure were positive for both zones (+0.2 pp for the euro area and +0.1 pp for the EU). The contributions of gross fixed capital formation were negative for the euro area (-0.8 pp) and for the EU (-0.6 pp). The contributions from the external balance were positive (+1.0 pp for the euro area and +0.9 pp for the EU). The contributions from changes in inventories were positive for the euro area (+0.1 pp) and negative for the EU (-0.1 pp).

GDP levels in the euro area and EU.      Based on seasonally adjusted figures, GDP volumes in the euro area and EU were 2.4% and 2.8% respectively above the level recorded in the fourth quarter of 2019, before the COVID-19 outbreak. For the United States, GDP was 5.1% higher than the level of the fourth quarter of 2019.

Employment growth in the euro area and EU.       The number of employed persons increased by 0.3% both in the euro area and in the EU in the fourth quarter of 2022, compared with the previous quarter. In the third quarter of 2022, employment had increased by 0.3% in the euro area and by 0.2% in the EU.

Compared with the same quarter of the previous year, employment increased by 1.5% in the euro area and by 1.3% in the EU in the fourth quarter of 2022, after +1.8% in the euro area and +1.5% in the EU in the third quarter of 2022. According to a first estimation of annual growth for 2022, based on quarterly data, employment increased by 2.2% in the euro area and by 2.0% in the EU.

Hours worked increased by 0.4% in the euro area and by 0.5% in the EU in the fourth quarter of 2022, compared with the previous quarter. Compared with the same quarter of the previous year, the hours worked increased by 1.3% in the euro area and by 1.1% in the EU (see annex table on employment in hours worked).

Employment growth in Member States.        In the fourth quarter of 2022, Malta (+1.6%), Poland (+0.9%), Estonia, Cyprus and the Netherlands (all +0.7%) recorded the highest growth of employment in persons compared with the previous quarter. The highest decline of employment was recorded in Portugal (-0.8%), Lithuania and Latvia (both -0.5%).

Employment levels in the euro area and EU.       Based on seasonally adjusted figures, Eurostat estimates that in the fourth quarter of 2022, 214.6 million people were employed in the EU, of which 165.0 million were in the euro area. In relation to the COVID-19 pandemic, employment in persons in the euro area was 3.6 million above the level of the fourth quarter of 2019, and 4.7 million above this level in the EU.

Evolution of labour productivity in the euro area and EU.       The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous year shows that productivity growth fluctuated around 1% for both zones between 2013 and 2018 before the COVID-19 pandemic caused high volatility in 2020. In the fourth quarter of 2022, productivity based on persons increased by 0.3% in the euro area and 0.4% in the EU compared to the same quarter of the previous year. Based on hours worked, productivity compared to the same quarter of the previous year decreased by 0.3% in the euro area and remained stable in the EU.