EU, Euro Area Growth Slows Down to 1.7% in Q2 2011 Y/Y

The economies of the EU 27 and the Euro Area (EA 17) both grew by 1.7% in the second quarter of 2011 year-on-year, according to flash data published Tuesday by Eurostat.

The data indicate a slowdown after both zones grew by 2.5% year-on-year in the first quarter of 2011.

GDP in both EU 27 and EA 17 increased by 0.2% in the second quarter of the year compared with the previous quarter.  In the first quarter of 2011, growth rates were +0.8% in both zones.

The Eurostat data reiterate the figures released last week about the Bulgarian economy by the National Statistical Institute in Sofia. Bulgaria's GDP grew by 1.9% in the second quarter year-on-year, and by 0.1% compared with the first quarter. Bulgaria's economy grew by 3.4% y/y in the first quarter of 2011, and by 3.8% y/y in the fourth quarter of 2010.

The greatest growth in the EU in Q2 was registered by Estonia – 8.3% y/y and 2.2% compared with Q1. followed by Lithuania with 5.9% y/y, Latvia with 5.7% y/y, Sweden with 5.3% y/y. The largest EU economy Germany is also doing relatively well with a growth of 2.8% y/y and 0.1% compared with the previous quarter.

Only Portugal registered a decline of 0.9% y/y, while Greece did not provide data. France grew by 1.6% y/y, and by zero compared with the previous quarter. The UK, Italy, and Spain registered growth below 0.8% y/y and below 0.3% compared with the first quarter.

The only non-euro zone countries with worse growth than Bulgaria are Romania with a growth of 0.3% y/y and 0.2% compared with the previous quarter, and Hungary with a y/y growth of 1.2%, and zero growth compared with the first quarter.

The Eurostat data set also mentions that during the second quarter of 2011, GDP in the United States increased by 0.3% compared with the previous quarter (after 0.1% in the first quarter of 2011). In Japan GDP fell by 0.3% in the second quarter of 2011 (after -0.9%).

Compared with the same quarter of the previous year, GDP rose by 1.6% in the United States (after 2.2% in the previous quarter), and decreased by 0.9% in Japan (after 0.7%).

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