Eurozone economy expanded by 0.1% from April to June, with Spain at the forefront of growth
This article provides an overview of the GDP growth rates for various economies in the second quarter of 2025, comparing them to previous quarters and year-on-year growth.
Quarter-on-Quarter Growth (Q2 2025)
The Eurozone's GDP grew by 0.1% in Q2 2025, a decline from the 0.6% increase in Q1. The European Union, on the other hand, saw a growth of 0.2%, down from 0.5% in Q1. Spain led the growth among Eurozone countries with a 0.7% increase, up from 0.6% in Q1. Germany and Italy, however, contracted by 0.1%, having previously increased by 0.3% in Q1. Ireland experienced a significant contraction of 1.0%, down from a 7.4% increase in Q1. Portugal rebounded with a 0.6% increase, previously down by 0.4% in Q1. Estonia saw a 0.5% growth, improving from a 0.3% decrease in Q1.
Year-on-Year Growth (Q2 2025)
The Eurozone's GDP rose by 1.4% in Q2 2025, slightly below the 1.5% increase in Q1. The European Union's growth was 1.5%, down from 1.6% in Q1. Spain, Germany, Italy, and Ireland all recorded positive year-on-year growth, with specific figures varying by country.
Comparison with Other Major Economies
The United States' GDP increased by 0.7% in Q2 2025 compared to the previous quarter, and by 2.0% year-on-year.
Key Observations
The Eurozone experienced a slowdown in GDP growth, with key economies like Germany and Italy contracting. Spain and Portugal showed strong growth, while Ireland faced a significant decline. The European Union's growth was slightly higher than the Eurozone's, reflecting stronger performances from non-euro countries. The US economy rebounded with a stronger Q2 growth rate compared to Q1. Industrial production in the eurozone fell by 1.3% in June compared to May. Spain led growth among the single currency countries with an expansion of 0.7%. Economic growth in Europe slowed down between April and June compared to the 0.6% advance in the euro area and the 0.5% in the Twenty-Seven registered in the first quarter of the year. In Spain, industrial production rebounded by 1.1% in June from the previous 0.5%. The European Central Bank (ECB) expects the growth of the euro area to be, on average, 0.9% in 2025, 1.1% in 2026, and 1.3% in 2027.
[1] European Commission (2025). GDP growth rate for Q2 2025.
[2] Eurostat (2025). GDP growth rate for Q2 2025.
[3] Central Statistics Office (Ireland) (2025). GDP growth rate for Q2 2025.
[4] Federal Reserve Bank of St. Louis (2025). GDP growth rate for Q2 2025.
[5] European Commission (2025). GDP growth rate for Q1 2025.
[1] Despite the Eurozone's slowdown, some countries, such as Spain and Portugal, showcased strong growth in the second quarter of 2025, indicating resilience within the European business landscape.
[2] Meanwhile, the finance sector in the United States experienced a rebound with a Q2 2025 growth rate higher than the previous quarter, reflecting the industry's potential to adapt and recover in challenging economic conditions.
