Eurozone Surprises with Q2 Growth Spurt as Ireland Leads the Pack

The European economy defied expectations in Q2 of 2026 by growing at a faster pace than predicted, according to preliminary estimates from Eurostat. The eurozone GDP expanded by 0.4% quarter-on-quarter, surpassing economists' forecasts for a 0.2% increase.

Ireland led the growth with its GDP surging 3.9%, followed closely by Lithuania at 1.7% and Sweden at 1.4%. These countries' strong performances added significantly to the eurozone's overall growth, with Ireland alone contributing 0.1 percentage points.

Southern Europe also showed resilience, with Portugal growing 0.8% and Spain expanding by 0.7%, outperforming its peers. In contrast, Belgium and Austria stagnated, while Germany, France, and Italy expanded at slower rates than expected.