FX.co ★ Euro Area GDP Annual Growth Rate Revised Higher to 1.5%

The Euro Area economy experienced a notable expansion of 1.5% on an annual basis in the first quarter of 2025, surpassing earlier projections of 1.2%. This marks the most robust annual performance since the fourth quarter of 2022. The previous quarter, Q4 2024, had seen a growth of 1.2%. Key to this growth was a rebound in gross fixed capital formation, which increased by 1.9% compared to a decline of 1.8% previously. Additionally, there was a significant acceleration in both exports, rising by 2.3% from 1.2%, and imports, increasing by 3.3% from 1.3%. However, there was a slight deceleration in household spending, which grew by 1.3%, down from 1.6%, and in government expenditures, which increased by 2.1%, down from 2.4%. Examining the larger economies within the eurozone, Germany's GDP remained unchanged. Meanwhile, France saw an expansion of 0.6%, Italy grew by 0.7%, Spain had a substantial rise of 2.8%, and the Netherlands recorded growth of 2%.