Euro zone economic growth slowed sharply quarter-on-quarter as expected in the last three months of 2021, data confirmed today.
Euro zone activity was hit by another wave of Covid-19 infections and surging prices that cut into disposable incomes during the fourth quarter.
The European Union's statistics office Eurostat confirmed its earlier estimate that gross domestic product in the 19 countries sharing the euro rose 0.3% on a quarterly basis in the three months from October to December for a 4.6% year-on-year increase.
At the same time euro zone employment rose 0.5% quarter-on-quarter for 2.1% year-on-year rise, as expected by economists polled by Reuters.
Eurostat data also showed that a jump in energy prices hit the euro zone's trade balance hard.
The increased energy prices push it into a seasonally unadjusted trade deficit of €4.6 billion in December from a surplus of €28.3 billion a year earlier as exports rose 14.1% while imports surged 36.7%.
Adjusted for seasonal swings, the euro zone trade deficit was even larger at €9.7 billion in December, up from a €1.8 billion gap in November and surpluses throughout the rest of 2021.
The more expensive energy boosted the European Union's energy trade deficit to a whopping €276.7 billion in 2021, up from €157.2 billion in 2020.
Europe's trade gap with its biggest energy supplier Russia more than quadrupled to €69.2 billion last year from €15.7 billion in 2020.
The trade deficit with Norway, also a major EU energy supplier, swing to a €18 billion deficit from a €6.1 billion surplus in 2020.
