The eurozone economy grew 0.4 percent in the second quarter of 2026 from the previous three months, returning to expansion after a flat start to the year. Gross domestic product across the wider European Union increased 0.5 percent in the same period.
Annual growth also accelerated. Output was 1.0 percent higher than a year earlier in the euro area and 1.2 percent higher across the EU, compared with first-quarter rates of 0.5 percent and 0.8 percent respectively.
The rebound was uneven among members with available data. Ireland recorded the strongest quarterly increase at 3.9 percent, followed by Lithuania at 1.7 percent and Sweden at 1.4 percent, while Belgium and Austria registered no growth.
The largest eurozone economies remained in a slower band. Germany, France and Italy each expanded 0.2 percent from the first quarter, while Spain grew 0.7 percent and continued to outperform the three larger economies.
The figures mark a change from the first quarter, when eurozone GDP was unchanged and EU output rose only 0.1 percent. The second-quarter result points to a recovery in activity, although its strength depends heavily on the distribution of growth across individual economies.
The conflict in the Middle East remains the principal downside risk identified for the euro area. A prolonged escalation could affect energy costs, trade and confidence, while a more contained conflict would leave room for continued moderate growth.
The European Central Bank kept its three key interest rates unchanged the previous week. The decision left monetary policy steady as the bank weighs improving output data against geopolitical uncertainty and the risk that external shocks could alter inflation and growth conditions.
