Eurozone Economic Growth Slows to 0.1% in the Second Quarter

SadaNews - The growth of the Eurozone economy slowed in the second quarter of this year, both on an annual and quarterly basis.

According to data released today, Wednesday, July 30, by Eurostat, the Gross Domestic Product (GDP) of the Eurozone grew by about 0.1% in the second quarter on a quarterly basis, compared to a growth rate of 0.6% in the first quarter.

On an annual basis, the Eurozone economy grew by about 1.4% during the three months ending in June, compared to a growth rate of 1.5% in the first quarter.

In a separate context, data revealed that the German economy contracted by about 0.1% on a quarterly basis in the second quarter of 2025.

According to the data, the GDP figures are adjusted for prices and seasonal changes and align with expectations, compared to growth of about 0.3% in the first quarter.

The Federal Statistical Office indicated that investments in equipment and machinery, as well as construction, were lower in the second quarter compared to the first three months of 2025.

On the other hand, expenditures for both government and private consumption increased.

Concerns over tariffs and their impact were among the significant fears threatening European economies. The reciprocal tariffs announced by U.S. President Donald Trump went into effect in April, coinciding with the start of the second quarter.

However, the European Union reached a framework trade agreement with the U.S. over the weekend, which includes tariffs of 15% imposed on the union, with some goods exempted, and a reduction in tariffs on cars.