Statistics Explained

Quarterly national accounts - GDP and employment

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Data extracted on 19 January 2023.

Planned article update: 20 April 2023.

Highlights

GDP up by 0.3 % and employment up by 0.3 % in the euro area in the third quarter of 2022.

GDP up by 0.3 % and employment up by 0.2 % in the EU in the third quarter of 2022.

GDP and employment growth rates, % change over the previous quarter, based on seasonally adjusted data, 2022Q3
Source: Eurostat (namq_10_a10_e)

This article presents key messages and data extractions based on Eurostat's updated estimation of quarterly gross domestic product (GDP) and employment for the third quarter of 2022 in the European Union (EU) and euro area (EA-19) released on 19 January 2023. This completes a sequence of quarterly estimates of European main national accounts aggregates (including employment) that are based on available country data (see previous news releases).

Compared with the previous release on 7 December 2022, growth rates for GDP and employment in persons stayed unchanged for the euro area and for the EU. Please note that the Greek data have a series break in 2010 resulting from the benchmark revision implemented from 2010 onwards. The Greek data incorporated in the aggregates have been adjusted to preserve the growth rates of the time series for periods before 2010. Moreover, particular developments of GFCF that are observed in the aggregates are often related to the activities of MNEs in the Irish economy.


Full article


Quarterly GDP growth

GDP up by 0.3 % in both the euro area and in the EU

According to an estimate (see Data sources below) published by Eurostat, GDP increased by 0.3 % in both the euro area (EA-19) and the EU during the third quarter of 2022, compared with the previous quarter. These increases follow an increase in the second quarter of 2022 (0.9 % in the euro area and 0.7 % in the EU).

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 2.3 % in the euro area and by 2.5 % in the EU in the third quarter of 2022, after an increase of 4.3 % in the euro area and 4.4 % in the EU in the previous quarter.

During the third quarter of 2022, GDP in the United States increased by 0.8 % compared with the previous quarter (after -0.1 % in the second quarter of 2022). Compared with the same quarter of the previous year, GDP increased by 1.9 % (after 1.8 % in the previous quarter).

Table 1: Growth rates of GDP in volume (based on seasonally adjusted data), 2022Q3
Source: Eurostat (namq_10_gdp) and (naidq_10_gdp) for JP, US data


Figure 1: GDP growth rates, % change over the previous quarter, based on seasonally adjusted data, 2008Q1-2022Q3
Source: Eurostat (namq_10_gdp) and (naidq_10_gdp) for US data

GDP growth by Member State

Among the EU Member States, the highest increases were recorded in Ireland (+2.3 %), Cyprus and Malta (both +1.3 %) in the third quarter of 2022, while the highest decreases were observed in Estonia (-1.8 %), Latvia (-1.7 %) and Slovenia (-1.4 %).


Figure 2: GDP growth rates by Member State, % change over the previous quarter, based on seasonally adjusted data, 2022Q3
Source: Eurostat (namq_10_gdp)

GDP components and contributions to growth

During the third quarter of 2022, household final consumption expenditure increased by 0.8 % in the euro area and by 0.6 % in the EU (after +1.1 % in the euro area and by +1.0 % in the EU). Government final consumption expenditure increases by 0.2 % in the euro area and by 0.1 % in the EU (after -0.1 % in both the euro area and the EU in the previous quarter). Gross fixed capital formation increased by 3.6 % in the euro area and by 3.2 % in the EU (after +1.0 % and 1.1 %, respectively in the previous quarter). Exports increased by 1.7 % in the euro area and by 1.9 % in the EU (after +1.8 % in both the euro area and the EU). Imports increased by 4.2 % in the euro area and by 3.9 % in the EU (after +2.2 % in the euro area and by +3.9 % in the EU).

Household final consumption expenditure had a positive contribution to GDP growth in both the euro area and the EU (+0.4 percentage points (pp) and +0.3 pp respectively). The contributions from government final expenditure were negligible in both the euro area and in the EU. The contribution of gross fixed capital formation was positive in both the euro area and in the EU (+0.8 pp and +0.7 pp, respectively). Changes in inventories had a positive contribution to GDP growth in both the euro area and in the EU (+0.1 pp and +0.2 pp respectively. The contribution of the external balance was negative in both the euro area and in the EU (-1.1 pp and -0.9 pp respectively).

Figure 3: Decomposition of GDP growth by expenditure aggregates, contributions to growth (over the previous quarter) in percentage points, 2021Q4 - 2022Q3
Source: Eurostat (namq_10_gdp)

Quarterly employment growth

Number of employed persons up by 0.3 % in the euro area and up by 0.2 % in the EU

The number of persons employed increased by 0.3 % in the euro area and by 0.2 % in the EU in the third quarter of 2022 compared with the previous quarter. In the second quarter of 2022, employment had increased by 0.3 % in both the euro area and the EU. Hours worked decreased by 0.1 % in the euro area and by 0.2 % in the EU in the third quarter of 2022 (after increasing by 0.6 % and by 0.5 % respectively in the second quarter of 2022).

Compared with the same quarter of the previous year, employment based on persons increased by 1.8 % in the euro area and by 1.5 % in the EU in the third quarter of 2022 (after +2.6 % in the euro area and by +2.4 % in the EU in the second quarter of 2022). Number of hours worked increased by 2.2 % in the euro area and by 1.6 % in the EU in the third quarter of 2022 (after +3.6 % and +3.0 % respectively in the second quarter of 2022).

These data on employment provide a picture of labour input consistent with the output and income measure of national accounts.

Table 2: Growth rates of employment in persons (¹), 2022Q3
Source: Eurostat (namq_10_a10_e)


Table 3: Growth rates of employment in hours worked (¹), 2022Q3
Source: Eurostat (namq_10_a10_e)


Figure 4: Growth of employment in persons and hours worked, % change over the previous quarter, based on seasonally adjusted data, 2008Q1 - 2022Q3
Source: Eurostat (namq_10_a10_e)

Employment growth by Member State

Among EU Member States, the highest increases in employment in persons were observed in Spain (+1.4 %), as well as Cyprus and Malta (both +1.0 %). Finland (-0.8 %), Romania (-0.6 %) and Poland (-0.4 %) recorded the highest declines in the third quarter of 2022 compared with the previous quarter.

Estonia (+7.4 %), Portugal (+1.1 %) and Cyprus (+0.9 %) experienced the highest increases in employment measured in hours worked. Greece (-4.0 %), Malta (-3.1 %), as well as Latvia, the Netherlands and Poland (all -1.6 %) recorded the largest decreases.

Figure 5: Employment growth rates, % change over the previous quarter, based on seasonally adjusted data, 2022Q3
Source: Eurostat (namq_10_a10_e)

Employment levels

Employment in persons increased by 0.5 million in the euro area and by 0.4 million in the EU

Based on seasonally adjusted figures, Eurostat estimates that in the third quarter of 2022, 213.8 million people were employed in the EU, of whom 164.5 million were in the euro area. In relation to the COVID-19 pandemic, employment in persons in the euro area was 3.1 million above the level of the fourth quarter of 2019 and 3.9 million above this level in the EU.

Figure 6: Evolution of employment in persons and hours worked, index 2015=100, based on seasonally adjusted data, 2008Q1 - 2022Q3
Source: Eurostat (namq_10_a10_e)

Labour productivity

The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared with the same quarter of the previous year shows that productivity growth (based on employed persons) fluctuated around 1.0 % for both zones between 2013 and 2018 before the COVID-19 pandemic caused high volatility in 2020.

In the third quarter of 2022, productivity based on persons increased by 0.6 % in the euro area and by 1.0 % in the EU compared with the same quarter of the previous year.

Based on hours worked, productivity compared with the same quarter of the previous year decreased by 0.2 % in the euro area and in increased by 0.6 % in the EU.


Figure 7: Labour productivity growth rates, % change over same quarter of the previous year, based on seasonally adjusted data, 2008Q1-2022Q3
Source: Eurostat (namq_10_lp_ulc)

Source data for tables and graphs

Excel.jpg Detailed tables of GDP and Employment estimate 2022Q3

Data sources

Eurostat collects GDP and employment data in the framework of ESA 2010. See here for more details. Additional information on the dissemination of ESA 2010 data is available under latest news on the dedicated website and in the database section National accounts (ESA 2010) (na10).

European aggregates are revised at specific release dates. The preliminary flash estimate of GDP growth of the fourth quarter of 2022 will be released on 31 January 2023 and will be updated on 14 February 2023. The next regular estimates of European aggregates are due on 8 March 2023 (for both GDP and employment estimates). Revision triangles for GDP for the euro area and the EU can be found here. These revision triangles are updated once per quarter.

Please note that most EU countries carried out benchmark revisions in September-October 2019. A few countries conducted their benchmark revisions in August-October of 2020 and Luxembourg in 2021. A smaller group of countries had already carried out their benchmark revisions in the earlier years (between 2016 and 2018).

For further details see the Eurostat website.


Context

Quarterly figures on the evolution of gross domestic product (GDP) and its main aggregates are among the most significant indicators of the state of any economy, be it at a national or European level and are of key interest to users. Typical users of quarterly national accounts (QNA) figures are market analysts, forecasters or economic and monetary policy advisors interested in assessing the state of the current business cycle.

The ESA 2010 distinguishes between two employment concepts depending on geographical coverage: resident persons in employment (i.e. the national scope of employment) and employment in resident production units irrespective of the place of residence of the employed person (i.e. domestic scope). The ESA 2010 recognises several employment measures: persons, hours worked and jobs. Eurostat publishes mainly employment data measured in persons and in hours worked.

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