Eurozone Economy Surprises with Stronger-Than-Expected Growth in Q2

The eurozone economy showed stronger-than-expected growth in Q2 of 2026, expanding by 0.4% quarter-on-quarter and beating economists' forecasts of a 0.2% increase.

According to preliminary estimates from Eurostat, the EU's GDP accelerated to 0.5%, up from 0.1% previously, while annual growth strengthened to 1.0% in the euro area and 1.2% across the EU.

Ireland led European growth with a 3.9% quarterly expansion, followed by Lithuania at 1.7%, and Sweden at 1.4%. Southern Europe also remained resilient, with Portugal recording 0.8% quarterly growth and Spain expanding by 0.7%.

However, Germany's economy grew by only 0.2%, slowing from 0.4% in the first quarter, while France expanded by 0.2% after contracting in the previous quarter. Italy also expanded by 0.2%, but at a slower pace than previously.