The eurozone economy expanded 0.4 percent in the second quarter of 2026, the strongest quarterly growth since the first quarter of 2025, recovering from a flat first quarter. Output in the 20-nation currency bloc rose 1.0 percent year-on-year, according to Eurostat estimates.
Ireland led all member states with 3.9 percent growth, followed by Lithuania at 1.7 percent and Spain at 0.7 percent. The bloc's largest economies — Germany, France, and Italy — each posted modest 0.2 percent gains, while Austria and Belgium recorded no growth. The broader European Union economy expanded 0.5 percent quarter-on-quarter.
Sentiment indicators point to improving confidence. The European Commission's business climate barometer climbed to 96.9 points in July, and consumer confidence rose to minus 15.9. However, the European Central Bank has downgraded its 2026 eurozone growth forecast to 0.8 percent.