Eurozone Economy Surpasses Expectations with 0.4% Q2 Growth

The Eurozone economy posted a stronger-than-expected growth of 0.4% in Q2 2025, surpassing the market consensus forecast of 0.2%. This marks an acceleration from the 0.3% growth recorded in the first quarter of the year.

The data, published by Eurostat, shows that consumer spending, industrial output, and services sector growth, particularly in tourism and hospitality across southern member states, contributed to the rebound.

However, country-level divergence persists, with Germany posting near-stagnant growth due to weakness in its manufacturing sector and subdued global demand. In contrast, Spain and Italy recorded more robust expansions, supported by strong tourism revenues and domestic consumption.

The European Central Bank (ECB) will consider the data as it navigates its monetary policy stance, particularly with inflation still above the 2% target.