Eurozone Q2 2026 GDP Growth Beats Forecast, Led by Ireland

Preliminary Eurostat data show that the Eurozone's gross domestic product rose 0.4% quarter‑on‑quarter in the second quarter of 2026, surpassing economists' 0.2% forecast. Across the European Union the quarterly increase was 0.5%, while annual growth reached 1.0% for the Eurozone and 1.2% for the EU as a whole. Ireland posted the strongest expansion at 3.9%, followed by Lithuania (1.7%) and Sweden (1.4%). Portugal and Spain added 0.8% and 0.7% respectively, whereas Belgium and Austria recorded no growth. Germany, France and Italy all grew, but at a slower pace than in the previous quarter.

According to Klaus Vistesen, chief economist for the Eurozone at Pantheon Macro‑Economics, “net exports were the main driver of GDP growth in the second quarter, while consumption slowed and investment fell.” He warned that a resurgence of inflation in Germany and Spain could revive debate over a possible European Central Bank rate hike. The uneven distribution of growth and the reliance on external demand highlight ongoing challenges for the bloc’s economic resilience.