Eurozone GDP slows to 0.1% growth in the second quarter

Eurozone gross domestic product (GDP) growth slowed to 0.1% in the second quarter of the year, coinciding with the height of trade tensions, compared to the 0.6% expansion observed in the first three months of 2025, Eurostat confirmed Thursday.

In the case of the EU27, GDP grew by 0.2% between April and June compared to the previous three months, when the EU economy expanded by 0.5%.

The data confirm a slowdown in the euro's growth, driven by the trade war instigated by US President Donald Trump through the "tsunami" of tariffs imposed on all of its trading partners. The European Union, as one of them, has not been exempt from the review of the trade conditions that bind both blocs.

Ursula von der Leyen and Donald Trump signed an agreement establishing a 15% tariff cap on most European exports to the United States. These tariffs could be considered modest, considering the 35% and 40% tariffs imposed on Canada and Brazil, respectively. Similarly, as part of the agreement, the European Union committed to large-scale investments in the United States, as well as to purchasing energy and military equipment from that country.

Although the tariffs came into effect just a week ago, and their impact on the European economy remains to be seen, they will likely leave a clear mark on the eurozone's already slowing growth. Compared to the second quarter of last year, GDP grew by 1.4% in the eurozone and 1.5% in the EU, according to the EU statistical office.

Among the Member States with data available for the second quarter of 2025, the fastest-growing economies in the EU were Romania (1.2%); Poland (0.8%); Spain, Slovenia, and Bulgaria (0.7% each). In contrast, Ireland's GDP declined by 1% in the second quarter, while the economies of Germany and Italy shrank by 0.1%, respectively.

By comparison, in the second quarter of 2025, US GDP increased by 0.7% compared to the previous quarter, when it had fallen by 0.1%, while UK GDP increased by 0.3%, four-tenths of a percentage point below the 0.7% expansion of the first quarter.

The European Central Bank's (ECB) latest macroeconomic projections predict eurozone growth of 0.9% on average in 2025, 1.1% in 2026, and 1.3% in 2027. The International Monetary Fund (IMF) predicts eurozone growth of 1% in 2025, while the forecast for 2026 is 1.2%.