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Eurozone GDP rises 0.1% QoQ in Q2 2025, second estimate confirms

The Eurozone economy grew 0.1% in the second quarter of 2025 (Q2), confirming the preliminary print, the second estimate released by Eurostat showed on Thursday.

The bloc’s Gross Domestic Product (GDP) increased at an annual rate of 1.4% in Q2, same as that seen in the initial estimate, while aligning with the market consensus.

Meanwhile, the Eurozone Industrial Production came in at -1.3% month-over-month (MoM) and 0.2% year-over-year (YoY).

The Employment Change for Q2 arrived at 0.1% QoQ and 0.7% YoY.

Market reaction

The Eurozone data fails to have any significant impact on the Euro. At the press time, EUR/USD trades 0.26% lower on the day at 1.1675.

GDP FAQs

A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.

A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate.

When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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