Despite commercial tensions … unexpected growth for the eurozone economy

The eurozone economy recorded a sudden growth during the second quarter of 2025, beyond pre -expectations, despite commercial tensions escalating with the United States under the administration of US President Donald Trump.

According to official data issued by the European Statistics Agency “Eurostat”, the GDP, which includes 20 European countries, increased by 0.1% during the period from April to June 2025 compared to the first quarter.

This growth is modest, but it is better than the market expectations that suggested 0%, according to the polls of “Bloomberg” and “Pact Set” institutions.

Various performance between the countries of the Union

The countries of the euro region have witnessed a remarkable disparity in economic performance:

France exceeded the expectations of a growth of 0.3%, supported by the strong performance of the industrial and service sectors.

Spain recorded the highest growth among the countries of the region by 0.7%.

In contrast, Germany’s economy, the first economic power, shrinks 0.1%.

Italy’s economy itself also declined (0.1%) during the same period.

As for the European Union as a whole (27 countries), economic growth reached 0.2%, after it was 0.5% in the first quarter of the year.

A temporary trade agreement to avoid escalation

Although the Trump administration imposed 15% new customs duties on most European exports to the United States, the two sides reached an initial agreement on Sunday that prevented a comprehensive trade war.

Although the agreement came in a timely manner, its details are still mysterious, while preliminary estimates indicate that customs duties may lead to a reduction in the gross domestic product of the euro area by 0.2% during 2025, according to estimates of “Capital Economics”.

Warnings of subsequent effects on growth

European economist Franzska Palmas stressed that the temporary agreement, although it reduced the crisis, will remain perceived, saying: “The pace of economic growth in the euro area is likely to remain weak for the rest of the year, especially if customs duties continue at this level or are expanded later.”

It expected that the American definitions, especially the pharmaceutical preparations and semi -conductors, would affect limited exceptions that have not yet been announced.