(CN) — The European Union cut greenhouse gas emissions by 7% without cutting gross domestic product, which remained stable through the fourth quarter of 2023, according to data published by Eurostat on Wednesday.
"Economic activity is likely to have stagnated in the fourth quarter of 2023 and incoming data continue to signal weakness in the near term,” said Luis de Guindos, vice-president of the European Central Bank in a Valentine's Day speech. “At the same time, some forward-looking survey indicators point to a pick-up in growth further ahead."
As the shocks of the Covid-19 pandemic and the energy crisis wane, de Guindos called on the EU to focus on visions of growth to keep the continent competitive in the global economy.
Per Eurostat, GDP increased across the EU by 0.1% between 2022 and 2023 and remained unchanged between the third and fourth quarters of last year.
The International Monetary Fund projects total EU GDP to hit 18 trillion euros ($19.35 trillion) this year, up from 17 trillion euros ($18.35 trillion) last year.
By comparison, the fund estimates U.S. GDP to hit $28 trillion (26 trillion euros). The country's GDP increased 3% from last year.
Slovakia and Portugal reported the highest year-over-year increases in GDP, both over 2%. With a near 5% drop in GDP, Ireland reported the largest decrease, followed by Estonia, 3%, and Austria, 1.2%.
As average GDP remained stable, EU member states reported a 2.6% increase in industrial production between last November and December, largely driven by increases in capital goods.
Between November and December 2023, production of capital goods increased 18% across the EU, with all other groups — non-durable consumers goods, energy and intermediate goods — tracking increases of less than 1% each.
Rates of industrial production varied widely across member states, with Ireland representing the greatest increase of production at 24%. Compared to December 2022, Ireland increased production 45% in December 2023.
Slovenia, 7%, Croatia, 4%, and Finland, 3%, reported the largest month-over-month declines in industrial production toward the end of 2023. Year-over-year, Slovenia’s industrial production decreased 10%, followed by Hungary, 9%, and Bulgaria, 7%.
During the third quarter of 2023, the EU reported reducing its greenhouse gas emissions to 787 million tons of CO2 equivalents, a 7% decrease compared to the previous quarter. The trend is noteworthy as the EU continues to prioritize fostering a greener economy in the face of climate change.
Eurostat largely attributed the decline to a 23% decrease in emissions from electricity and gas. Households also cut greenhouse gas emissions by 7% and manufacturers by 5%.
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