Eurozone Economy Grows 0.6% in Q1 2025
The economy of the Eurozone expanded at a significantly faster pace than initially estimated in the first quarter of 2025, thanks to better-than-expected growth in Germany and robust production in Ireland.
Revised Growth Figures
According to the European Union’s (EU) data agency, the 20-country eurozone recorded a growth rate of 0.6% in the January-March period compared to the previous quarter, up from the previously reported 0.3%.
This figure represents a downward revision from the initial estimate of 0.4% published in April.
Germany’s Contribution to Eurozone Growth
The growth impetus came from the EU’s economic powerhouse, Germany, which registered a 0.4% expansion in Q1, revised upwards from the initially estimated 0.2%.
These figures confirm Germany’s return to growth, following a 0.2% contraction in the final quarter of the previous year.
Ireland’s Strong Performance
Meanwhile, Ireland experienced a significant upward revision in its growth rate, reaching 9.7% in the period according to Eurostat, compared to the initially estimated 3.2%.
Experts’ Caution on Data Interpretation
Despite the positive growth figures, experts from Oxford Economics cautioned that the Eurozone’s revision was “misleading.”
They warned that the volatile US trade policies could potentially cause further issues, casting doubt on the sustainability of these growth figures.
Key Questions and Answers
- Q: What was the growth rate of the Eurozone in Q1 2025?
A: The Eurozone’s growth rate was revised upwards to 0.6% in Q1 2025, surpassing the initial estimate of 0.3%.
- Q: Which countries significantly contributed to this growth?
A: Germany’s better-than-expected 0.4% growth and Ireland’s robust production, revised to 9.7%, were key factors in the Eurozone’s expansion.
- Q: How did experts react to these growth figures?
A: While acknowledging the positive growth, experts from Oxford Economics cautioned that these figures could be “misleading” due to uncertainties in US trade policies.
