Eurozone's economic expansion registered a minor 0.1% in the second quarter of the year. - Euro area economy experienced a modest 0.1% expansion during the second quarter
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The European Union (EU) has reported a modest increase in its overall economic output in the second quarter of 2025, according to the latest data from Eurostat. The Eurozone, which comprises 19 EU member states that use the euro currency, experienced a growth of 0.1% quarter-on-quarter, a sharp slowdown from the 0.6% growth recorded in the first quarter. The EU-27 overall grew slightly faster at 0.2% in Q2 2025.
Individual EU countries' economic performances varied in the second quarter. Portugal's economy grew by 0.6%, while Ireland's economy shrank by 1.0%. On the other hand, Spain's economy grew by 0.7%, the highest among the Eurozone countries. Germany and Italy, however, contracted in Q2 2025, contributing to the overall Eurozone slowdown.
The growth or shrinkage of these economies may have various impacts on the global economy. The exact figures for Spain, Portugal, and Estonia are not yet available, but they are likely to have been affected by the overall Eurozone slowdown and trade uncertainty, much like other medium-sized economies.
In Q1 2025, Ireland showed strong GDP growth, with a 0.6% seasonally adjusted quarter-on-quarter increase, driven by multinational activity and investment. This marked the highest growth in over two years.
The growth in Q1 2025 benefited from front-loading of imports by US firms to avoid tariffs, a factor absent in Q2 which contributed to the slowdown. Trade tensions between the EU and US (tariffs on automobiles, steel, aluminum) were a drag on Eurozone growth.
In Q2 2021, many Eurozone countries saw a rebound following the COVID-19 shock in 2020, with strong growth in several economies including Spain, Portugal, Ireland, and Estonia, supported by easing restrictions and recovery funds. However, specific Q2 2021 data for these countries is not available in the current search results.
Here is a summary table of the approximate Q2/Q1 2025 growth rates for the countries discussed:
| Country | Q1 2025 Growth | Q2 2025 Growth | Notes | |-----------|-------------------------|--------------------------|-----------------------------------------------| | Germany | Positive but slowed | Contracted (negative) | Contributed to slowdown | | Italy | Positive but slowed | Contracted (negative) | Contributed to slowdown | | Ireland | +0.6% quarter-on-quarter| Data not explicit for Q2 | Strong growth in Q1 due to multinationals | | Spain | Not given | Not given | Affected by overall Eurozone slowdown | | Portugal | Not given | Not given | Similar impact as Spain | | Estonia | Not given | Not given | No specific data; regional trends apply |
For more detailed and specific Q1 and Q2 2021 data by country, official Eurostat statistics databases or publications should be consulted directly.
- Despite the European Union (EU) showing a modest increase in overall economic output in Q2 2025, employment policies within various member states could play a crucial role in mitigating the impacts of the Eurozone slowdown, particularly in sectors most affected by trade uncertainty.
- The financial well-being of industries within the EU may be influenced by employment policies that promote job creation and stability, ensuring a balanced recovery from the quarter-on-quarter slowdown experienced by the Eurozone in Q2 2025.
