According to Eurostat, Eurozone's economic growth slowed to just 0.1% in the second quarter of 2025 due to weakened trade flows and rising tariffs.
Economic Slowdown in the Eurozone
In Q2 2025, Eurozone's economy grew by only 0.1%, down from 0.6% in Q1. This slowdown is largely attributed to the negative effects of trade wars and increased tariffs. Trade tensions between Washington and Brussels significantly affected the region's economic dynamics.
Performance of Germany, France, and Spain
Data revealed that Germany, the region's largest economy, contracted by 0.1% in Q2, in line with forecasts, after a 0.3% expansion in Q1. In contrast, France delivered a growth of 0.3%, while Spain clocked in at 0.7%, highlighting the growing imbalance in economic performance.
Future Outlook: Tariffs and Economic Policy
The economic situation in the Eurozone remains pressured, and, according to experts, this may affect the European Central Bank's decisions on interest rates. Continued uncertainty surrounding tariffs is expected to impact growth moving forward.
The Eurozone's economic growth faces challenges from slowdowns in key economies and trade tensions. The outlook remains uncertain, warranting close monitoring of further developments.
