The EU struck a tariff cope with the USA, which specialists say will have an effect on the eurozone’s GDP figures – Copyright AFP/File STEPHANE DE SAKUTIN
The eurozone economic system unexpectedly expanded within the second quarter of 2025, official information confirmed Wednesday, regardless of worldwide commerce tensions clouding the worldwide outlook.
The EU’s official information company stated the 20-country single foreign money space recorded progress of 0.1 % over the April-June interval from the earlier quarter.
Since US President Donald Trump returned to the White Home in January, he has hit the EU with a sequence of painful tariffs, however the bloc struck a deal Sunday to avert an escalating commerce struggle.
EU officers hope the settlement will deliver welcome certainty for corporations and stave off additional financial ache, however analysts warn Europe will nonetheless take successful to its output from the deal, which foresees a 15-percent tariff on most exports.
Eurostat information on Wednesday confirmed Europe’s second-largest economic system, France, beat expectations to develop by 0.3 % within the second quarter, but it surely was Spain that was the star performer, recording progress of 0.7 % between April and June.
Europe’s financial powerhouse, Germany, unexpectedly shrank by 0.1 % from the earlier quarter. Italy’s economic system additionally contracted by 0.1 % in the identical interval.
The eurozone determine was higher than 0.0 % predicted by analysts for Bloomberg and FactSet, and comes after the only foreign money space’s economic system grew by 0.6 % within the first quarter.
Economists have warned nonetheless in opposition to studying an excessive amount of into the primary quarter information because it was as a result of an excessive change in Eire’s figures.
The 27-country EU economic system expanded by 0.2 % over the April-June interval from the earlier quarter, after registering 0.5 % progress within the first three months of 2025.
– Weak progress anticipated –
The 12 months has been filled with uncertainty for Europe. Trump threatened 30-percent levies on most European items if Brussels and Washington didn’t clinch a deal by August 1.
Sunday’s settlement lacks particulars — with a lot nonetheless being negotiated — however the two sides confirmed a majority of EU merchandise would face the 15-percent tariff charge, together with prescribed drugs and semiconductors.
Economists warned the deal would inflict some injury on the eurozone economic system.
“With the 15 % US common tariff prone to subtract round 0.2 % from the area’s GDP, progress is prone to stay weak in the remainder of this 12 months,” Franziska Palmas, senior Europe economist at Capital Economics, stated.
Within the first half of the 12 months, European corporations rushed to ship extra items to keep away from Trump’s greater tariffs.
France’s Economic system Minister Eric Lombard stated the figures for France demonstrated the nation’s corporations had been, nonetheless, proving resilient to US tariff hikes.
France is now pushing for zero tariffs on alcohol together with champagne and wines in addition to spirits as talks are nonetheless ongoing on the problem.
European officers say the deal included an settlement on bilateral tariff exemptions for sure items — however which of them precisely remained to be nailed down.
