Eurozone economy beats expectations amid U.S. tariff turmoil

Eurozone economy beats expectations amid U.S. tariff turmoil

Posted on May 6, 2025 |

Eurozone GDP grew 0.4% in Q1 2025, beating analyst expectations of 0.25% and doubling the previous quarter’s growth of 0.2%.

The European Union (EU) economy expanded by 0.3% from January to March, slightly below its Q4 2024 growth of 0.4%.

Ireland led the surge with a sharp 3.2% quarterly GDP jump, partly due to front-loaded exports ahead of potential U.S. tariffs.

Spain posted strong growth at 0.6%, the highest among major eurozone economies in Q1 2025.

France slowed the region’s performance, with only 0.1% growth due to political unrest and looming austerity measures.

Germany's economy outperformed forecasts, growing 0.2% in Q1 despite ongoing structural and industrial challenges.

Despite Q1 resilience, the IMF downgraded its eurozone growth outlook for 2025 to 0.8%, citing continued U.S. trade tensions.

The eurozone still faces long-term headwinds from weak industrial output and high energy costs stemming from the 2022 Ukraine war.

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