Eurozone GDP grows 0.4% in Q2 2026, highest since early 2025

The eurozone experienced its strongest GDP growth since early 2025, expanding by 0.4% in the second quarter of 2026. This figure surpassed economists' predictions of 0.2% and indicates a positive economic trend for the bloc. On an annual basis, seasonally adjusted GDP rose by 1.0% in the euro area and 1.2% in the European Union.

Economic performance varied significantly across member states. Ireland led the growth with a remarkable 3.9% quarterly increase. However, economists note that Ireland's figures can be highly volatile due to the substantial influence of large multinational corporations based there. At the other end of the spectrum, Austria and Belgium reported no growth during the quarter.

Despite the economic headwinds from the U.S.-Iran war, the eurozone's largest economies demonstrated steady, albeit modest, expansion. Germany, France, and Italy each grew by 0.2%. Spain, which has been a strong performer in recent years, recorded a growth rate of 0.7%.