According to updated quarterly figures released by Eurostat in August 2025, the euro area economy posted modest growth in Q2 2025. GDP rose by 0.1% quarter-on-quarter, significantly below the +0.6% expansion recorded in Q1. Year-on-year, eurozone GDP grew by 1.4%, while growth across the EU as a whole stood at +1.5% with a 0.2% quarterly increase. 

Q1 2025 marked the strongest performance in the past two and a half years, driven by sharp growth in several countries — including Ireland — as well as rising consumer spending (+1.3% year-on-year). 

In Q2, the main contributions to economic activity came from the services and construction sectors. Among euro area countries, GDP growth was recorded in France (+0.3%), the Netherlands (+0.1%), and Spain (+0.7%). However, the region’s two largest economies — Germany and Italy — contracted by –0.1%. Within the EU, the highest quarterly growth was observed in Romania (+1.2%), while Ireland posted a –1.0% decline. 

According to the current release schedule, confirmed data for Q3 2025 are expected on September 5, 2025. 

Forecasts from international institutions vary: 

• IMF expects eurozone GDP growth at +1.2% in 2025, 

• EBRD forecasts +1.0%, 

• Capital Economics projects +0.9%. 

Several global banks, including JPMorgan and Goldman Sachs, expect growth acceleration in the second half of 2025, provided that global trade conditions stabilize. 

Comment from the Investment Division of M24 SunShine: 

The slowdown in eurozone GDP growth to +0.1% after a strong Q1 underscores the fragility of the recovery. Contractions in Germany and Italy, which form the region’s economic core, may signal the start of a stagnation cycle. Forecasts from the IMF and EBRD remain in the 1.0–1.2% range, which seems more like a compromise between expectations and reality. External risks — including trade tensions and geopolitical instability — continue to weigh on growth prospects.