18 July 2025, Bremen, Bremerhaven: Containers are dealt with on the abroad port.
Sina Schuldt/image alliance by way of Getty Pictures)
The euro zone economic system eked out a better-than-expected 0.1% progress within the second quarter, in comparison with the earlier three-month stretch, flash knowledge from Eurostat confirmed Wednesday.
Economists polled by Reuters had anticipated euro zone progress to flatline within the interval, following a 0.6% enlargement within the first quarter.
“The slowdown in euro-zone GDP progress in Q2 got here as no shock because the enhance from tariff front-running waned,” Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, mentioned in a be aware.
“Total, the information recommend that the euro-zone has been resilient to the shifts in US commerce coverage to date. Entrance-running of the tariffs gave the economic system a lift in Q1, and the affect of commerce coverage uncertainty has seemingly been restricted to date,” he added.
U.S. tariffs and their impact have been a prime concern for European economies to date this 12 months. U.S. President Donald Trump’s so-called reciprocal tariffs initially got here into impact in April because the second quarter kicked off.
The duties have been then nonetheless temporarily diminished, however the previous few months have been stricken by a lot uncertainty as negotiations for commerce settlement have been underway. Some larger sectoral tariffs, together with on autos and steel and aluminum, have additionally been in impact.
The European Union over the weekend agreed to a commerce framework with the U.S., which incorporates 15% tariffs being imposed on the bloc. Some items are set to be exempt, and levies on autos have been diminished to the baseline stage.
German economic system contracts
Earlier on Wednesday, preliminary knowledge from statistics company Destatis confirmed that output from the European Union’s largest economic system, Germany, shrank barely by 0.1% within the second quarter of 2025 from the earlier three months.
The determine, which is adjusted for worth, calendar and differences due to the season, aligned with the expectations of analysts polled by Reuters and marked a pointy slowdown in comparison with a revised 0.3% enlargement within the first quarter.
Funding in equipment and tools, in addition to building, have been decrease within the second quarter than within the earlier three-month interval, whereas personal and authorities consumption expenditures elevated, Destatis knowledge signaled.