Eurozone Growth Slips to a Whisper in Q2 2025
In the second quarter of 2025, the Eurozone’s GDP ticked up by a mere 0.1%, a stark drop from the 0.6% seen in Q1 after a June revision. In other words, the economy’s party trick has suddenly forgotten the punchline.
What’s Happening Under the Surface?
- Inflation – got a little chill. Prices are no longer a runaway marathon.
- ECB’s Interest Rate Cut – the central bank has finally flattened the curve, nudging the rate down to 2%. Some say this gives the bloc a breather to catch its breath.
Trade Tussles Still Stir the Pot
The fresh US‑EU trade deal trimmed the most severe tariffs from a scary 30% to a more palatable 15%, but that’s still a hefty bump up from earlier norms.
Political Pain: German Chancellor and French Prime Minister both slammed the agreement. Investors? Spinning out spreadsheets like acrobats, betting that the deal will leave the Eurozone in a financial “pain” list.
Forecasts: A Slow Walk Ahead
Economists project a gradual uptick over the next two years, but for now, growth will look more like a polite nod than a full-on cheer. The spotlight? Government spending – especially in infrastructure and defense— is expected to be the secret sauce to reignite that weary economy.
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