Economic conditions & trends

Eurozone Economy Grows 0.4% in Q1 2025

MAY 1 2025·Updated MAY 2 2025

Story

Above: A ticket with a banknote and euro coins during a payment placed on a table in Clermont Ferrand France on March 8 2025. Image credit: ROMAIN COSTASECA/Hans Lucas/AFP via Getty Images

The Facts

The Eurozone economy expanded by 0.4% in the first quarter of 2025, doubling the previous quarter's 0.2% growth rate, while the European Union (EU) grew by 0.3%, according to preliminary data released by Eurostat.
Eunews
EuroNews
Europa
Since the same quarter last year, GDP increased by 1.2% in the Eurozone and 1.4% in the EU, maintaining the same annual growth rates as recorded in the fourth quarter of 2024, though these preliminary estimates are based on incomplete data and subject to further revisions.
Euractiv
Eunews
Europa
Ireland posted the strongest quarterly performance with 3.2% growth, followed by Spain and Lithuania at 0.6% each, while Hungary was the only EU member state to record a contraction, shrinking by 0.2% compared to the previous quarter.
Eunews
EuroNews
Europa
Germany, the eurozone's largest economy, returned to growth with a 0.2% expansion after contracting 0.2% in the previous quarter and still seeing a 0.2% year-on-year decline, while France registered a 0.1% quarterly increase.
Euractiv
EuroNews
Europa
The quarterly growth rate of 0.4% exceeded market expectations of 0.2% and marked the fifth consecutive quarter of expansion for the 20-member currency bloc. the Eurozone economy has increased 5.3% compared to pre-pandemic levels (Q4 2019).
EuroNews
Commonslibrary
In April, the International Monetary Fund (IMF) revised the Eurozone's growth forecast down from 1.0% to 0.8% in 2025 and 1.4% to 1.2% in 2026. This comes as the Bureau of Economic Analysis estimated the U.S. economy declined by 0.3% in Q1 this year.
IMF
BEA

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The Spin

Pro-government narrative

Despite global uncertainty, the euro area economy is proving resilient. With inflation easing and wages stabilizing, lower interest rates are reviving lending and consumption. Strategic trade integration, a robust labor market, and bold initiatives like in defense, AI, and green energy are laying the groundwork for sustainable growth and renewed global competitiveness.

PubAffairs Bruxelles

European Central Bank

Opposition narrative

While some may see Europe's economy as stable, the reality remains that the continent's growth has long been slowly stagnating. Even if economic rejuvenation is possible, the Iberian Peninsula's recent power outage exposed the vulnerable underbelly of Europe's economy. Weakness within a world of global uncertainty poses serious dangers for Europe as its economy trudges towards irrelevance.