Economic expansion within the eurozone thus far remaining subdued, according to Eurostat data.
The Eurozone economy grew modestly in the second quarter of 2025, with a 0.1% increase in GDP compared to the previous quarter. This growth rate, however, marks the weakest since Q4 2023 and a slowdown from 0.6% in Q1 [1][2][3].
Individual Eurozone countries showed varying performance during this period. Spain led the way with a significant 0.7% increase in its GDP, driven by robust domestic demand and capital investment [2][3][4]. France also saw a slight acceleration in growth, with a 0.3% increase in GDP [2][3][4]. However, Germany and Italy both experienced slight contractions, with GDP declining by -0.1% in each [2][3][4].
Industrial production, however, weakened significantly. Eurozone industrial output declined by -1.3% month-over-month and marginally increased 0.2% year-over-year in Q2, indicating ongoing challenges in the manufacturing sector that likely press on overall growth momentum [1][4].
The cautious growth environment in the Eurozone partly reflects lingering uncertainties from trade tensions with the United States. The slowdown from Q1’s stronger performance was attributed to a prior tariff front-loading effect, while continued tariff and trade policy risks have prompted caution among businesses and households in the region [3][5]. The US-EU trade relationship is expected to improve with ongoing negotiations, which could ease these tensions and boost prospects for growth [5].
In June 2024, industrial production in the Eurozone increased by 0.2% compared to the same month the previous year [6]. This tariff is significantly lower than the 30% that had previously been threatened [7]. The initial estimate of the Eurozone's growth was released in late July [8]. The figures are based on data provided by Eurostat [1][2][3][6][7][8].
| Country | Q2 2025 GDP Growth QoQ | Notes | |----------|------------------------|---------------------------------------------------| | Spain | +0.7% | Strongest growth, led by domestic demand | | France | +0.3% | Moderate growth acceleration | | Germany | -0.1% | Slight contraction | | Italy | -0.1% | Slight contraction | | Eurozone | +0.1% | Slowest growth since Q4 2023 |
The decline in industrial production in June was more than economists had expected, with a predicted decline of 1.0% following a revised increase of 1.1% in May [1]. The German economy also shrank slightly in the spring, with a GDP decrease of 0.1% [9]. The Eurozone’s fragile recovery phase in mid-2025 underscores the ongoing challenges faced by its economies [1][3][4][5]. The European Union has averted a trade war with the United States through a deal, which means most EU products now face a 15% tariff in the US [7].
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