Eurozone Economy Posts Strongest Growth in Over a Year

2026-07-30 09:15 By Joana Ferreira 1 min. read

The eurozone economy expanded by 0.4% in the second quarter of 2026, accelerating from flat growth in the previous quarter and beating market expectations of a 0.2% increase, according to preliminary estimates.

It marked the bloc's strongest quarterly expansion since the first quarter of 2025, as robust AI-related investment, solid government spending, and one-off factors helped offset the impact of the conflict in Iran and higher energy costs.

Among the largest euro area economies, Spain once again led growth, with GDP rising 0.7%, up from 0.6% in the first quarter and above forecasts.

The Netherlands expanded by 0.4%, twice the expected pace, while France returned to growth with a 0.2% increase after a 0.1% contraction.

Germany and Italy also grew by 0.2%, easing slightly from the previous quarter but exceeding market expectations.

Year-over-year, the eurozone economic growth accelerated to 1% in the second quarter from a revised 0.5% three months earlier, also above expectations.



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Eurozone Economy Posts Strongest Growth in Over a Year
The eurozone economy expanded by 0.4% in the second quarter of 2026, accelerating from flat growth in the previous quarter and beating market expectations of a 0.2% increase, according to preliminary estimates. It marked the bloc's strongest quarterly expansion since the first quarter of 2025, as robust AI-related investment, solid government spending, and one-off factors helped offset the impact of the conflict in Iran and higher energy costs. Among the largest euro area economies, Spain once again led growth, with GDP rising 0.7%, up from 0.6% in the first quarter and above forecasts. The Netherlands expanded by 0.4%, twice the expected pace, while France returned to growth with a 0.2% increase after a 0.1% contraction. Germany and Italy also grew by 0.2%, easing slightly from the previous quarter but exceeding market expectations. Year-over-year, the eurozone economic growth accelerated to 1% in the second quarter from a revised 0.5% three months earlier, also above expectations.
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