Eurozone GDP barely grows as trade tariffs dampen activity
By Benjamin Chiou
Date: Friday 05 Sep 2025
(Sharecast News) - Eurozone economic growth slowed in the second quarter to its weakest rate in two and a half years, final estimates from Eurostat confirmed on Friday.
Gross domestic product increased by just 0.1% in the April to June period, in line with estimates released last month but down from the 0.6% expansion recorded in the first quarter.
This was the slowest quarterly increase in economic activity since the fourth quarter of 2023.
The eurozone expanded at its strongest clip in nearly three years between January and March, mainly due to the frontloading of trade ahead of the launch of US tariffs in April. The new protectionist measures by the world's largest economy then led to a drop-off in economic activity in the second quarter.
The annual rate of GDP growth, however, was revised slightly higher to 1.5% for the second quarter, up from the initial estimate of 1.4% and in line with the 1.5% year-on-year growth seen in the first quarter.
Among member states, Croatia registered the strongest quarterly growth rate at 1.2%, up from 0.4% in the first quarter, while the Germany saw the weakest, contracting by 0.3% after growing 0.3% the previous quarter.
Eurostat also reported on Friday that employment levels increased 0.1% over the first quarter, in line with earlier estimates and down from the 0.2% growth seen in the first quarter.
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN