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The eurozone financial system skilled modest development within the second quarter of 2025, surpassing expectations regardless of elevated world commerce tensions. According to Eurostat, the 20 international locations utilizing the only forex recorded a 0.1% rise in GDP from April to June in comparison with the earlier quarter.
EU leaders have expressed optimism that the settlement will present companies with some stability. However, the compromise features a 15% tariff on a majority of EU exports to the US, which economists say may nonetheless negatively affect European output within the coming quarters.
Performance throughout particular person eurozone economies was blended. France stunned on the upside, recording 0.3% development within the second quarter. Spain outpaced all others, attaining a 0.7% growth throughout the identical interval. Meanwhile, Germany – the bloc’s largest financial system – noticed a slight contraction of 0.1%, as did Italy.
The general outcome for the euro space got here in above forecasts made by Bloomberg and FactSet, which had predicted flat development at 0.0%. The efficiency within the second quarter follows a stronger 0.6% growth within the first quarter of the yr. However, some economists have famous that the sooner figures had been skewed by extraordinary ends in Ireland, they usually warning towards utilizing them as a benchmark.
For the broader European Union, which incorporates seven international locations outdoors the eurozone, the financial system grew by 0.2% over the identical three-month interval. This follows a 0.5% enhance within the first quarter, suggesting that whereas development is slowing, the EU nonetheless managed to remain in constructive territory regardless of the financial headwinds.
