In the first three months of 2025, the eurozone experienced 0.6 percent GDP growth compared to the previous quarter, which was double the growth rate of 0.3 percent recorded in the last quarter of 2024. On an annual basis, GDP increased by 1.5 percent, up from 1.2 percent in the prior quarter. Ireland led the European Union with a significant GDP rise of 9.7 percent during the first quarter of 2024, primarily due to a surge in pharmaceutical exports to the United States before expected tariffs took effect.
Household spending added 0.1 percentage points to the overall growth in the EU, while government spending remained unchanged. Employment in the eurozone increased by 0.2 percent from the previous quarter, contributing to the moderate economic expansion. Croatia and Spain experienced the most notable job growth, whereas Romania, Estonia, Lithuania, and Poland saw decreases. Overall, these figures indicate a cautiously positive outlook for the EU economy, supported by stable consumption and modest employment gains.
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Cautiously Optimistic EU Economic Data
(click to enlarge) n nIn the first quarter of 2025, the eurozone recorded 0.6 percent quarter-on-quarter GDP growth, doubling the 0.3 percent rate seen in the fourth quarter of 2024. Year-over-year, GDP rose by 1.5 percent, up from 1.2 percent in the previous quarter. Ireland posted the strongest performance in the European Union – a striking 9.7 percent GDP increase over the first quarter of 2024 – driven largely by a spike in pharmaceutical exports to the United States ahead of anticipated tariffs. n nHousehold consumption contributed 0.1 percentage points to overall EU growth, while government consumption held steady. Employment in the eurozone rose by 0.2 percent from the previous quarter, supporting the modest expansion. Croatia and Spain saw the largest employment gains, while Romania, Estonia, Lithuania and Poland posted declines. Altogether, the data suggest cautious optimism for the EU economic outlook, underpinned by steady consumption and modest job growth.