Eurozone Q2 GDP Growth Exceeds Expectations at +0.4%

Eurostat released preliminary Q2 2026 GDP data for the Eurozone, showing seasonally adjusted GDP growth of +0.4% quarter-on-quarter, surpassing market expectations of +0.2%. Year-on-year, Eurozone GDP rose by +1%. In the European Union, Q2 GDP grew by +0.5% quarter-on-quarter and +1.2% year-on-year. By country, Germany, France, and Italy saw GDP growth of +0.2%, while Spain grew by +0.7%. Compared to the same period last year, Germany rose by +0.9%, France by +0.7%, Italy by +1%, and Spain by +2.7%. The unemployment rate in the Eurozone stood at 6.3% in June, with total unemployed reaching 13.3 million, of which 11.1 million were in the Eurozone. The number of young unemployed (under 25) was 2.9 million in the EU and 2.3 million in the Eurozone, with youth unemployment rates at 15.5% and 14.8% respectively. The economic confidence index rose by 1.5 points to 96.9 in the Eurozone in July, while the EU index increased by 1.5 points to 97.2. The consumer confidence index improved from -17.6 to -15.9 in the Eurozone and from -17 to -15.1 in the EU.

The Eurozone's GDP growth exceeding expectations at +0.4% signals a potential exit from the recent economic slowdown. These figures will be closely watched by the European Central Bank as they assess monetary policy. Additionally, stable unemployment rates and rising confidence indices suggest improving consumer and business sentiment.