The eurozone economy beat expectations in early 2025, partly due to exporters rushing orders ahead of U.S. tariffs.
Eurostat reported first-quarter GDP growth of 0.4%, double analysts’ forecasts. This outpaced both the broader EU’s 0.3% growth and the usual trend, as non-eurozone countries like Sweden and Hungary underperformed.
Spain led major eurozone economies with 0.6% growth, while Italy grew 0.3%. Germany and France lagged at 0.2% and 0.1%, respectively.
The data, covering up to March 31, predates the April 2 tariff rollout by the U.S., which spurred concerns of a global downturn. Analysts believe exporters front-loaded shipments to avoid the tariffs.
Despite the strong start, the IMF recently cut its eurozone growth forecast for 2025 to 0.8%, citing global trade tensions.
via Politico