Eurozone economy grows 0.6% above market expectations in 1st quarter

LONDON (Agencies): The eurozone economy growth rate outpaced market expectations, hitting 0.6% in the first three months of 2025, official data showed Friday.

The EU’s data agency said the 20-country single currency area recorded growth of 0.6% over the January-March period from the previous quarter, up from the 0.3% figure published last month.

That figure was itself a downward revision from a first estimate of 0.4% issued in April.

The increase in exports positively affected the gross domestic product (GDP) growth, with a rise of 1.9% in the eurozone.

Investments also increased by 1.8% in both the euro area and the EU (after +0.7% and +0.6%, respectively).

Among the member states, Ireland saw the highest quarterly increase with 9.7%, followed by Malta with 2.1% and the Greek Cypriot with 1.3%.

Luxembourg’s economy shrank the most in the first quarter, with 1%, followed by Slovenia with 0.8% and Denmark and Portugal, both down 0.5%.

On a yearly basis, the euro area posted a GDP growth rate of 1.5%, with 1.6% for the EU, according to Eurostat.

Meanwhile, employment in the euro area rose by 0.2% on a quarterly basis in the first quarter of 2025, while it posted no change in the EU.

On an annual basis, the eurozone’s employment climbed 0.7%, while the EU’s was up 0.4% in the first quarter.

The eurozone/euro area, or EA20, represents member states that use the single currency-the euro-while the EU27 includes all member countries of the bloc.