Eurozone economy grows 0.4% in Q2, beating forecasts

The eurozone economy expanded faster than expected in the second quarter of 2026, preliminary data from Eurostat showed on Thursday.

Gross domestic product (GDP) in the euro area rose 0.4% quarter-on-quarter, double market expectations of 0.2%, after remaining unchanged in the first quarter.

The EU economy grew 0.5% from the previous quarter, accelerating from an increase of 0.1% in January-March, according to the bloc’s statistical office.

On an annual basis, GDP increased 1% in the eurozone and 1.2% across the EU in the second quarter.

That marked an acceleration from annual growth rates of 0.5% in the euro area and 0.8% in the EU during the previous quarter.

Among member states for which data were available, Ireland posted the strongest quarterly growth at 3.9%, followed by Lithuania at 1.7% and Sweden at 1.4%.

Finland’s economy expanded 0.9%, Portugal’s 0.8%, and Spain’s 0.7%.

Germany, the eurozone’s largest economy, grew 0.2% quarter-on-quarter, slowing from 0.4% in the first quarter. France and Italy also recorded quarterly growth of 0.2%.

Belgium and Austria posted the weakest performances, with their economies remaining unchanged from the previous quarter.

Compared with the same period last year, economic growth was positive in 14 of the countries covered by the preliminary estimate and negative in one.

Lithuania recorded the strongest annual increase at 3.8%, while Ireland’s GDP contracted 5.6% year-on-year despite its sharp quarterly rebound.