The euro area economy grew 0.4% in the second quarter, twice the market forecast

According to the flash estimate published on Thursday, 30 July 2026 (8 Mordad 1405), euro area gross domestic product grew 0.4 percent in the second quarter of 2026 from the previous quarter. The figure was a revised zero percent in the first quarter, and the market forecast was 0.2 percent.

Compared with the same quarter a year earlier, the euro area economy was 1 percent larger, against a revised 0.5 percent in the first quarter and a market forecast of 0.5 percent. The euro area unemployment rate held unchanged at 6.3 percent in June.

Among the region's larger economies, Germany grew 0.2 percent on the quarter and 0.9 percent on the year in the second quarter, France 0.2 percent quarterly and 0.7 percent annually, Italy 0.2 percent quarterly and 1 percent annually, and Spain 0.7 percent quarterly and 2.7 percent annually. The better than expected growth was recorded at a time when European energy prices have risen sharply since the start of the calendar year. Euro area growth and inflation are inputs into the European Central Bank's interest rate decisions and therefore among the factors affecting the euro to dollar exchange rate.