The eurozone economy grew by 0.4% in the first quarter of 2025, while the European Union as a whole recorded a 0.3% increase, according to preliminary data released by Eurostat. These figures surpassed economists’ expectations, who had forecast a modest 0.2% rise in a Reuters poll.
In the final quarter of 2024, GDP had risen by 0.2% in the euro area and by 0.4% across the EU. On an annual basis, seasonally adjusted GDP grew by 1.2% in the eurozone and by 1.4% in the EU during the first quarter of 2025—matching the growth rates recorded in the previous quarter.
Among the member states with available data for Q1 2025, Ireland posted the highest quarterly growth at 3.2%, followed by Spain and Lithuania, both with a 0.6% increase. Hungary was the only member state to report a decline, with GDP contracting by 0.2% compared to the previous quarter.
Year-on-year growth was positive in eleven member states, while three saw contractions.
Eurostat noted that these estimates are based on incomplete data sources and may be subject to future revisions.
Franziska Palmas, Senior Europe Economist at Capital Economics, told CNBC that the figures suggest the eurozone economy started 2025 on a stronger footing than previous business activity surveys had indicated.
“Nevertheless, we still expect a sharp slowdown in growth over the next six months, as the U.S. tariffs introduced in April are likely to weigh on activity,” she said, adding that any boost from the large-scale fiscal stimulus expected in Germany will likely be felt more prominently in 2026.
Source: Tovima.com
