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The European Union and eurozone economies delivered stronger-than-expected growth in the first quarter of 2025, with both regions expanding 0.6% from the previous quarter, the European Union's statistics office announced Friday.
The quarterly growth figure doubled Eurostat's preliminary estimate of 0.3% released last month and exceeded analyst forecasts, signaling renewed momentum in the bloc's economic recovery.
Export growth emerged as a key driver of the economic expansion, with eurozone exports climbing 1.9% during the three months. Investment activity also contributed significantly to the upturn, rising 1.8% in both the eurozone and broader EU, following more modest gains of 0.7% and 0.6%, respectively, in the previous quarter.
Ireland posted the most dramatic quarterly expansion among member states at 9.7%, while Malta recorded 2.1% growth and Cyprus achieved a 1.3% increase. The strong performance in these smaller economies helped offset weakness elsewhere in the bloc.
Several countries experienced economic contraction during the period. Luxembourg saw the steepest decline at 1%, followed by Slovenia at 0.8%. Both Denmark and Portugal recorded 0.5% quarterly contractions.
When measured against the same period last year, the eurozone achieved 1.5% annual growth, while the broader EU posted 1.6% year-over-year expansion, according to Eurostat data.
Labor market conditions showed mixed signals across the region.
Eurozone employment rose 0.2% quarterly in the first three months of 2025, while EU-wide employment remained unchanged from the previous quarter. On an annual basis, eurozone employment climbed 0.7%, outpacing the EU's 0.4% yearly increase.
The eurozone encompasses the 20 member states that have adopted the euro currency, while the EU includes all 27 countries in the bloc regardless of their currency arrangements.
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