Eurozone economy grows 0.4% amid rising business bankruptcies

Eurostat reports that the Eurozone economy grew by 0.4% between April and June 2026. This represents the largest quarterly increase in the region over the past year, following a period of stagnation in early 2026. The broader European Union saw a 0.5% increase during the same period. On an annual basis, GDP grew by 1% in the Eurozone and 1.2% in the EU.

Individual performance varied significantly across member states. Ireland recorded the highest quarterly growth at 3.9%, followed by Lithuania at 1.7% and Sweden at 1.4%. Spain saw a 0.7% increase, while Germany, France, and Italy each grew by 0.2%. Conversely, Belgium and Austria experienced economic stagnation.

Despite the GDP growth, business bankruptcies in the European Union rose by 5.7% compared to the previous quarter. In the Eurozone, bankruptcies increased by 6.9%. The most significant rises occurred in the education and social activities sector, which saw a 21.1% increase, followed by transport at 11.4% and financial services at 6.8%. In contrast, bankruptcies declined in the accommodation, catering, construction, and trade sectors.