Eurozone economic growth doubled since beginning of 2025 — Bloomberg

The eurozone economy expanded at twice the expected rate in the first months of 2025, fueled by surging exports from Ireland and Germany following the implementation of new US trade tariffs. Ireland's economy grew by nearly 10% in the first quarter—the strongest performance in the EU—while Germany's robust recovery added further momentum, together driving the bloc's unexpectedly strong start to the year.

According to Eurostat's Friday release, the eurozone's GDP grew by 0.6% quarter-on-quarter, significantly above the 0.3% growth forecast in May. Only two analysts surveyed by Bloomberg had anticipated this level of expansion. Export growth contributed 0.9 percentage points to the quarterly GDP figure, with strong investment flows providing additional support.

ECB President Christine Lagarde attributed the positive performance to strengthening labor markets and rising household incomes, while noting that the central bank's recent deposit rate cut to 2% should further stimulate economic activity. The ECB's revised outlook, published Thursday, suggests gradual acceleration in EU growth from 0.9% this year to 1.1% in 2026 and 1.3% in 2027.