Eurozone accelerated economic growth and outpaced the US in quarterly dynamics

The eurozone economy grew by 0.4% in the second quarter of 2026 compared to the previous three months. The result was twice as high as the average forecast of analysts, who expected GDP to increase by about 0.2%.

The indicator points to a recovery after a weak start to the year. The economy of the currency bloc showed resilience, despite expensive energy resources, geopolitical tensions, and uncertainty for international trade.

The eurozone's growth rate was slightly higher than that of the United States. The US economy expanded by 1.5% at an annualized rate in the second quarter, slowing from 2.1% in January-March. Without annualization, this figure equates to about 0.4% for the quarter and slightly trails the eurozone's result.

However, the published figures cannot be compared directly: European statistics show GDP change relative to the previous quarter, while American figures represent the annualized rate the economy would achieve if the current quarterly pace were maintained for a full year.

US growth fell short of expectations due to an increase in imports, which are subtracted when calculating GDP. Imports reduced the headline figure by about 1.5 percentage points. At the same time, consumer spending rose by 3.2% on an annual basis, and companies continued to invest heavily in equipment and infrastructure for artificial intelligence.

Among the eurozone's largest economies, Germany, France, and Italy grew by 0.2% in the second quarter. Spain showed stronger momentum, with GDP rising 0.7%. The Irish economy, after a previous decline, expanded by 3.9%, though its statistics are traditionally subject to large swings due to the activities of multinational corporations. German economic growth is also highlighted in the presented set of publications.

One supportive factor for the European economy was the weakening of the euro, which boosted export competitiveness. However, persistently high oil and other energy prices could slow growth in the second half of the year.

The strong GDP figures could also influence the monetary policy of the European Central Bank. The regulator holds its interest rate at 2.25%, but further decisions will depend on inflation, energy prices, and the consequences of the conflict in the Middle East.

The published estimates are preliminary and may later be revised once more complete economic statistics become available.

Based on materials from: Financial Times, Associated Press