GDP growth: closing the year with a bang

Accogdp_02_15.ENGjpgrding to the preliminary data, GDP grew by a hefty 3.4% in the fourth quarter year-on-year, an acceleration from the 3.2% registered in Q3. This comes as a surprise, considering the relatively muted growth of gross industrial and construction output during the afore-mentioned period. This 3.4% is the highest pace within the EU-28 (at least among the member states that has already published their Q4 growth figure). In 2014 as a whole, GDP grew by 3.5%, a dynamic pace not seen since 2006.

Especially remarkable is the quarter-on-quarter growth rate of 0.9%, despite the fact that gross production has actually  decreased against the third quarter in both industry and construction in Q4. An acceleration in the services sector is likely to have played a crucial role in the acceleration of GDP growth. As for the final use of GDP, the acceleration can probably be attributed to the rise in the pace of growth of private consumption to 2.5-3%, from a meagre 1.1%,registered in the third quarter.