
Eurozone economic growth overshadowed by Trump’s trade policy
The eurozone economy showed impressive growth in the last quarter of 2024. Q4 2024 GDP turned out to be higher than expected. These solid figures resulted from data revisions, but this did not confuse analysts. Interestingly, the overall GDP owes this upgrade mainly to Ireland's strong economic performance.
According to Eurostat, the Irish economy, which was previously expected to shrink by 1.3%, on the contrary, expanded by 3.6% after some revisions. This adjustment is linked to Ireland's large multinational sector, which often distorts economic data.
However, the overall picture for the eurozone economy remains surprisingly positive. The GDP of the 20 euro-using countries grew by 0.2% in Q2 2025. This is slightly higher than the previous estimate of a 0.1% increase. However, the figures from most countries, including Germany and France, logged a decline.
The eurozone economy is struggling to expand as households reduce consumption, as emphasized by Eurostat. At the same time, it is becoming increasingly difficult for governments to achieve a balance. The governments of some countries have limited funds for social spending. Besides, the industrial sector is losing momentum. Uncertainty is exacerbated by the policies of most companies, which are hesitant to invest. Many are waiting for clarification regarding the US trade strategy.