Eurozone Economy Expands 0.1% Only in Q2

The Eurozone economy grew 0.1% quarter-on-quarter in Q2 2025, its weakest performance since Q4 2023, slowing from 0.6% in Q1, the third estimates from the Eurostat confirmed. The slowdown follows a Q1 boost from tariff front-loading, while lingering uncertainty over US trade measures has prompted greater caution among businesses and households. Household expenditure expanded less (0.1% vs 0.3%) and both gross fixed capital formation (-1.8% vs 2.7%) and exports (-0.5% vs 2.2%) contracted. Meanwhile, imports flattened after a 2.2% surge in the previous period while public spending rebounded (0.5% vs -0.1%). Inventories also made a positive contribution to GDP growth. Among the bloc's largest economies, GDP contracted in Germany (-0.3%) and Italy (-0.1%) but grew in France (0.3%) and Spain (0.7%). Year-on-year, Eurozone GDP rose 1.5%, revised higher from 1.4% in the previous estimates and following an upwardly revised 1.6% in Q1.