The Eurozone economy grew by 0.4% in the second quarter of 2026, matching the flash estimate and accelerating from zero growth in the previous quarter, according to the second release of the data. This was the bloc’s strongest quarterly expansion since the first quarter of 2025, as robust AI-related investment, solid government spending, and several one-off factors helped counteract the drag from the conflict in Iran and higher energy prices.
Among the largest euro area economies, Spain again led the pack, with GDP expanding by 0.7%, up from 0.6% in the first quarter and beating forecasts. The Netherlands grew by 0.4%, twice the pace expected by markets, while France returned to positive territory with a 0.2% increase after a 0.1% contraction in the prior quarter. Germany and Italy also posted 0.2% growth, a slight moderation from the previous quarter but still stronger than anticipated.
On an annual basis, Eurozone GDP growth picked up to 1.0% in the second quarter, up from a revised 0.5% in the first quarter and in line with the initial flash estimate.
