GDP reading: GDP flatlined on a seasonally adjusted month-on-month basis in July, following a 0.4% increase in the prior month...
Economic Growth in Euro Area
The Euro area's GDP growth over the last decade was modest and uneven across member states. The region experienced gradual recovery post-Eurozone crisis, but growth remained constrained by structural weaknesses and unfavorable demographics. The COVID-19 pandemic led to a significant contraction in 2020. Recovery since then has been robust but uneven, with peripheral economies posting large expansions while heavyweight Germany largely stagnated.
In the year 2024, the economic growth in Euro Area was 0.78%, compared to 1.45% in 2014 and 0.52% in 2023. It averaged 1.49% over the last decade. For more GDP information, visit our dedicated page.
Euro Area GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Euro Area from 2017 to 2021.
Source: Macrobond.
Euro Area GDP Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Economic Growth (GDP, ann. var. %) | -6.2 | 6.3 | 3.7 | 0.5 | 0.8 |
| GDP (EUR bn) | 11,616 | 12,619 | 13,758 | 14,638 | 15,200 |
| Economic Growth (Nominal GDP, ann. var. %) | -4.3 | 8.6 | 9.0 | 6.4 | 3.8 |
GDP growth records best reading since Q2 2022 in Q1
GDP growth decelerates: According to a detailed release, GDP growth lost steam in Q2, falling to 0.1% on a seasonally-adjusted quarter-on-quarter basis from 0.6% in the first quarter. The print was in line with the flash estimate and marked the softest growth since Q4 2023. On an annual basis, economic growth slowed to 1.5% in Q2, compared to the previous quarter's 1.6% expansion.
Broad-based downturn: The downturn was driven by weakening private consumption, fixed investment and exports. Private consumption growth fell to 0.1% in Q2, marking the weakest expansion since Q4 2023 (Q1: +0.3% s.a. qoq). Moreover, fixed investment contracted 1.8% in Q2, marking the worst reading in a year (Q1: +2.7% s.a. qoq). Meanwhile, public consumption rebounded, growing 0.5% in Q2 (Q1: -0.1% s.a. qoq). On the external front, exports of goods and services fell 0.5% on a seasonally-adjusted quarterly basis in the second quarter, which contrasts the first quarter's 2.2% expansion, as front-loading efforts to the U.S. faded. Lastly, imports of goods and services were stable in Q2 (Q1: +2.2% s.a. qoq). Looking at key economies, momentum in Germany, Ireland and Italy deteriorated, while France and Spain gained steam.
Momentum to remain downbeat in H2: GDP growth is seen remaining near Q2’s downbeat level in H2 as U.S. tariffs weigh on exports. Nonetheless, in 2025 as a whole, the economy should grow at a faster clip than in 2024, boosted by ECB monetary policy easing and softer price pressures.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects European GDP projections for the next ten years from a panel of 77 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for European GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our European GDP projections.
Want to get access to the full dataset of European GDP forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
-
United Kingdom: Economy stagnates in July -
Ghana: Economic growth unchanged in Q2 GDP growth stable: GDP growth was unchanged year on year in the second quarter, matching Q1’s upwardly revised 6.3% figure... -
South Africa: Economic growth picks up in the second quarter GDP growth improves, as expected: As anticipated by our Consensus, the economy strengthened at a faster clip in the second... -
Brazil: Economic growth taps on the brakes in Q2 Near 20-year high interest rates take a toll on GDP growth: As projected by our Consensus, sequential GDP growth lost... -
Hungary: GDP ticks up in the second quarter Economy remains subdued: According to a second release, annual GDP growth edged up to 0.1% in the second quarter, above... -
Lithuania: Economic growth remains resilient in Q2 Growth slows but remains among Euro area’s fastest: The economy grew 3.1% year on year in the second quarter, down... -
Canada: Economy records sharpest contraction since Q2 2020 in Q2 GDP reading: GDP contracted 1.6% in seasonally adjusted annualized rate terms (SAAR) in the second quarter, contrasting the 2.0% expansion...