Eurozone Growth Revised Higher to 0.6% in Q2

The Eurozone economy expanded 0.6% in Q2 2026, revised up from initial estimates of 0.4%, according to final Eurostat data. It marked the strongest quarterly growth since Q2 2022, driven largely by a sharp upward revision to Ireland’s GDP, which surged 10.2% after plunging 7.8% in Q1. Germany’s growth was also revised higher to 0.3% from 0.2%, while France’s was lowered to 0.0% from 0.2%. Spain once again led the bloc’s larger economies, with flash data showing 0.7% growth, while Italy’s expansion was confirmed at 0.2%. Net trade made the largest contribution to growth, adding 0.9 percentage points as exports jumped 3.4%, outpacing a 1.5% rise in imports. Household consumption contributed 0.2 points, with spending rising 0.4% after a 0.1% increase in Q1. Fixed investment and government spending had negligible contributions, while changes in inventories subtracted 0.5 points. On an annual basis, Eurozone GDP growth accelerated to 1.2%, exceeding the second estimate of 1.0%.

The Eurozone economy expanded by 0.4% in the second quarter of 2026, in line with flash data and accelerating from flat growth in the previous quarter, second estimates showed. 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 the same as in the flash estimate.

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.