Eurozone Economy Expands 0.4% in Q2
The Eurozone economy expanded by 0.4% in Q2 2025 compared to the previous quarter, according to a flash estimate released by Eurostat on July 30, 2025. This figure aligns with market forecasts and marks a slight acceleration from the 0.3% growth recorded in the first quarter of the year.
While a detailed breakdown is not yet available in the flash estimate, economists point to a strong labor market and easing inflation as key supports for household consumption. The services sector, particularly tourism and business services, has been a notable contributor, while manufacturing remains subdued due to weak external demand.
Financial markets showed little immediate reaction, as the data matched expectations. The euro remained stable against major currencies, and government bond yields saw minimal movement. For the European Central Bank, this growth pace supports a gradual approach to monetary policy.