According to Eurostat, the economy of the 20 eurozone countries grew by 0.4% in the first quarter of 2025, beating forecasts of only 0.2%. However, experts point out that this result is largely distorted – a significant contribution to the overall statistics was made by Ireland, where GDP grew by 3.2% due to the activity of multinational corporations operating in the country for tax reasons.
The largest economies of the eurozone showed modest growth rates: Germany added 0.2%, France – 0.1%, Italy – 0.3%. Without the Irish surge, overall growth in the eurozone would have been significantly lower, indicating continued economic sluggishness in the region.
Additional concern is the fall in the key business sentiment index. The European Central Bank has previously warned that market instability caused by foreign policy factors and a decline in business confidence will negatively affect growth rates. Before the new US tariffs were imposed, the eurozone’s growth was expected to be no more than 1%, and any further shock could tip the region into recession.