Preliminary Q1 Eurozone GDP Beats Estimates

Preliminary eurozone Q1 GDP came in at +0.8% q/q (non-annualized) and +2.5% y/y, beating estimates for +0.6% q/q growth. Core countries, where a relatively mild winter likely boosted construction investment, outperformed those on the periphery—not terribly surprising given it’s mostly an extension of the last year’s pattern.

Germany and France, both of whom already reported preliminary expenditure breakdowns, benefited from business investment and brisk consumption growth. Greece jumped +0.8% after last quarter’s significant contraction, though it still faces headwinds to growth. Individual countries break down as follows:

• Germany: 1.5% q/q (consensus estimates: 0.9%, last quarter: 0.4%)
• France: 1.0% q/q (consensus estimates: 0.6%, last quarter: 0.3%)
• Italy: 0.1% q/q (consensus estimates: 0.3%, last quarter: 0.1%)
• Spain: 0.3% q/q (consensus estimates: 0.2%, last quarter: 0.2%)
• Netherlands: 0.9% q/q (consensus estimates: 0.7%, last quarter: 0.7%)
• Austria: 1.0% q/q (no estimates, last quarter: 0.9%)
• Greece: 0.8% q/q (no estimates, last quarter: -2.8%)
• Portugal: -0.7% q/q (consensus estimates: -0.3%, last quarter: -0.6%)