Euro zone economy expands by better-than-expected 0.4% in the first quarter
- The eurozone economy of 20 countries grew by 0.4% in the first quarter of 2025, surpassing the 0.2% forecast.
- This growth followed two years of stagnation worsened by surging energy prices, supply chain issues, and rising US-EU tariff tensions.
- Ireland’s strong 3.2% GDP rise, partly due to advance imports ahead of US tariffs, alongside growth in Spain and Germany, boosted the overall figures.
- Franziska Palmas noted that economic activity began the year more robustly than anticipated, but she cautioned that growth is likely to decline as US tariffs take effect.
- Despite the better start, tariff uncertainty and weakening business sentiment suggest subdued eurozone growth, with Germany’s incoming government preparing fiscal stimulus.
121 Articles
121 Articles
Eurozone Growth Outpaces Forecasts but Faces Trade Headwinds
Eurostat reported that the eurozone economy grew by 0.4% in the first quarter of 2025, surpassing the 0.2% forecast and doubling the previous quarter’s pace. This marks the fifth straight quarter of expansion and offers a modest boost for business sentiment across the 20-nation currency bloc. The wider European Union also grew, with GDP rising […]
EU economy grows more than expected in Q1 despite US tariff
BRUSSELS, Belgium — The eurozone economy expanded more than expected at the start of the year despite US President Donald Trump’s tariffs but global trade tensions threaten more pain and near stagnation in 2025. The EU’s official data agency said the 20-country single currency area recorded growth of 0.4 percent over the January-March period from
Commercial war: The European economy resists Trump in the first quarter
Europe's economic activity has resisted Donald Trump's untimely tariff announcements better than expected at the beginning of the year, but the impact of trade tensions is expected to keep it near-stagnant this year.

German growth better than expected but tariff turmoil looms
Germany's struggling economy grew faster than expected at the start of the year, data showed Wednesday, in a boost for the incoming government of conservative Friedrich Merz even as US tariffs threaten to derail the nascent recovery.
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