Eurozone grow more slowly in Q4

Gross domestic product (GDP) in the eurozone grew in real terms by 0.3% compared with the previous quarter in the fourth quarter of 2005, while growth in the EU 25 rose 0.4%, according to estimates from Eurostat, the Statistical Office of the European Communities.

This was slightly slower than in the third quarter of 2005, when growth rates were +0.7% in both zones.

Compared with the fourth quarter of 2004, real GDP grew by 1.8% in the euro-zone and by 2.0% year on year in the EU25.

This was slightly faster than the+1.6% and +1.9% respectively in the previous quarter.

In the fourth quarter of 2005 and among the Member States for which data are available, Eurostat reported that Latvia (+2.7%) recorded the highest growth rate, followed by Lithuania (+2.5%) and Estonia (+2.2%).

A decrease was recorded only in Greece (-0.2%).

In the fourth quarter of 2005, household final consumption expenditure slowed to 0.1% growth in the euro-zone and 0.3% in the EU25, after +0.5% in both zones in the third quarter.

Investment growth slowed to 0.3% in the euro-zone and 0.2% in the EU25 (after +1.0% and +1.3%).

Export growth decelerated sharply to 0.7% in the euro-zone and 1.1% in the EU25 (after +2.7% and +2.6%).

Import growth also sloweddown to 1.3% in the euro-zone and 1.4% in the EU25 (after +2.9% in both zones).

Over the whole year 20053, GDP grew by 1.3% in the euro-zone and by 1.6% in the EU25, compared to +2.0% and +2.4% respectively for 2004.

Over the whole year 2005, GDP grew by 3.5% in the US (+4.2% in 2004) and by 2.7% in Japan (+2.3% in 2004).