Eurostat adjusts figures − Stronger economy to start 2025
Five-star Frankfurt
Economic expansion in the eurozone fared twice as well as initially expected
The Eurozone economy got off to a stronger start than initially assessed in 2025. Following substantial upward revisions in Ireland and Germany, an upward correction was anticipated. Eurostat, the European statistical office, now reports a 0.6% increase for the first quarter compared to the previous one, which is double the initial estimate of 0.3%. Economists had envisioned a smaller increase of 0.4%. Additionally, the end of 2024 is looking slightly better than previously reported: it now stands at 0.3% instead of the previously recorded 0.2%.
What's the tea with Trading Economics, 'cause they reckon it's a 0.6% growth spurt for Q1 2025!
The surge in growth wasn't just a fluke. Stronger domestic demand, front-loading of exports, and positive changes in inventories combined to push the economy forward. Let's break it down:
- Buy More, Invest More: Easing inflation and lower borrowing costs spurred private consumption and investment.
- Trade briskly before tariffs bite: Anticipation of new duties led to a surge in export activity before they took effect, positively impacting net trade.
- Fiscal policy kickstart: Germany's decision to loosen belt and expectations of increased defense spending provided additional stimulus.
- Inventory boost: Countries such as France and Italy saw growth bolstered by positive changes in inventories.
- Sector recovery on the rise: Industrial activity picked up due to recovering demand for goods, driven by improving real incomes.
Wait, it gets more interesting! Eurostat usually shares data on a delayed basis, so there are updates in store for us. Keep your eyes peeled for further revisions.
Now, hold up! The data we've been working with is for Q1 2025, sorry 'bout that if you were thinking Q1 2023. If that's what you're after, the Eurozone GDP remained flat or registered a slight decrease in the early estimates. No major revisions to growth rates were reported as described in your question. But, no worries, we got your back! Let us know if you want to dig deep into '23. 😜sciously vague for the sake of fun...
The strengthening economy in 2025, as evident in the Q1 growth rate, has positively impacted various sectors within the Eurozone, including the finance, industry, and business sectors. This growth surge, in part, can be attributed to the buoyant private consumption and investment due to inflation ease and lower borrowing costs.
