EU GDP growth for Q1 2025 exceeded Bloomberg analysts' expectations

From January to March 2025, the economy of the European Union (EU) rose by 0.4%, exceeding both the results for the previous quarters and analysts' expectations. Experts surveyed by Bloomberg had forecasted the EU GDP to grow by only 0.2%. According to Eurostat data, European countries have been increasing production for five consecutive quarters. And the bloc's largest economies, Germany and France, have also shifted to growth after a long period of decline, the news agency said. Their results for the first quarter rose by 0.2% and 0.1%, respectively.

However, the positive dynamics may be short-term, as Europe has not yet faced the full impact of US import tariffs. The future performance could be spoiled by both the trade duties and worries about them, Bloomberg reported.

Philip Lane, Chief Economist of the European Central Bank (ECB), confirms a probable slowdown in EU GDP growth in the future, but excludes the threat of a recession. The regulator will continue to ease monetary policy in order to support the EU economy, Lane stressed.