Eurozone GDP Growth Hits 0.4 Percent in Second Quarter

The Eurozone economy accelerated its growth in the second quarter of 2026, with GDP expanding by 0.4 percent quarter-on-quarter. According to preliminary flash estimates from Eurostat, this figure beat market expectations of 0.2 percent and marks a significant improvement over the flat growth recorded in the first quarter. On an annual basis, Eurozone GDP growth rose to 1.0 percent, up from 0.5 percent.

The broader European Union economy also demonstrated strength, growing by 0.5 percent quarter-on-quarter and 1.2 percent year-on-year. This recovery was broad-based, led by strong performances in Spain and Portugal. France returned to growth following a contraction in the first quarter, while Germany continued a gradual recovery. Belgium and Austria remained stagnant.

Overall data suggests the region has increased its resilience against trade uncertainty and geopolitical tensions. Because of these stronger-than-expected figures, the European Central Bank may maintain a tightening bias to control inflation and prevent second-round effects.