Financial report 2000

Abstract

The year 2000 was one of the best of the last decade as average GDP growth in the EU reached 3.4 % in real terms. However, when one looks at the quarterly growth profile, the year can be split into two periods. The first half of the year saw a very strong perfor-mance, prolonging the dynamics of the end of 1999. The second half of 2000 turned out much slower, with quarterly growth rates of about 0.6 %. As expected, private consump-tion was held back in the second half of 2000 by the loss in purchasing power triggered by the surge in oil prices. Gross fixed capital for-mation has also been decelerating moderately over the last few quarters, but on the whole it remained an important contributor to growth. Net exports were the other major support to growth. Double-digit annual growth rates have been recorded for both export and im-port volumes since the end of 1999. Indeed, if one leaves aside the somewhat subdued household consumption, all demand compo-nents have been very well oriented in 2000, which explains this record performance.