Euro zone: GDP up +0.1% in Q4 2019

  •   11/03/2020 - 10h08
  •   DEHOUI Lionel

The information provided by Eurostat on Tuesday morning reveals that in the 4th quarter of 2019, GDP grew by +0.1% in the euro zone.

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Euro zone: GDP up +0.1% in Q4 2019
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The rise in GDP

Gross Domestic Product growth in the euro area is in line with the forecasts of financial analysts. Gross Domestic Product in the EU27 grew by +0.2%, ahead of that of the euro area. Going back a year earlier, the value of Gross Domestic Product was +0.3% in the euro area and +0.4% in the EU27 in the third quarter.

Considering the same quarter of 2018, improved Gross Domestic Product, with seasonal declines in the fourth quarter of +1.0% in the euro area and +1.2% in the EU27 in 2019. In the third quarter of 2019 they were +1.3% and +1.6%. Overall, Gross Domestic Product in 2019 grew by +1.2% in the euro area and by +1.5% in the EU27.

 

France's advantage over the euro zone

While the OECD is thinking of increasing the gross domestic product of the euro zone by 1%, it was reserving for the hexagon a 1.3% increase in its GDP. Thus, this comparative advantage of France because of its GDP places it in a superior position compared to its compatriots. Also, France depends very little on international trade and also has the advantage of a boost in purchasing power arising from the "Yellow Vests" scheme.

The hexagon in spite of being a little shaken by the movements related to this device has nevertheless subjects of satisfaction. To express these satisfactions, the governor of the Bank of France took the liberty of declaring last Friday that: "The French economy is more resistant to global slowdowns than its partners".

With the 1% increase officially attributed to the euro area, Gross Domestic Product in Germany is likely to be up by 0.7%. At the same time, the GDP of the hexagon would probably grow by 1.3% according to the forecasts of the international institution. France will therefore have the advantage of outperforming the euro zone in terms of growth. As for Germany, its performance was slightly less than that of France last year.

Denis Ferrand, CEO of the Rexecode Institute, justifies this slight performance by Germany, which will be felt in 2019, by the fact that: "France is less sensitive than other countries to changes in international trade. The opening up of the French economy to the outside world is much less than in Germany".

In 2017, exports accounted for a considerable portion of France's gross domestic product, at a rate of 31%, while in Germany, they accounted for 47% of GDP. Returning to the current context of 2019, the downward revision of the forecasts is due to the decline in international trade.