EU GDP and Employment Edge Higher in Q2 2025, but Investment and Trade Weigh on Growth

GDP growth in the euro area and the EU

In the second quarter of 2025, seasonally adjusted GDP increased by 0.1% in the euro area and by 0.2% in the EU, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2025, GDP had increased by 0.6% in the euro area and by 0.5% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.5% in the euro area and by 1.6% in the EU in the second quarter of 2025, after +1.6% in the euro area and +1.7% in the EU in the previous quarter.

During the second quarter of 2025, GDP in the United States increased by 0.8% compared to the previous quarter (after -0.1% in the first quarter of 2025). Compared with the same quarter of the previous year, GDP increased by 2.1% (after +2.0% in the previous quarter).

GDP growth by Member State

Denmark (+1.3%) recorded the highest increase of GDP compared to the previous quarter, followed by Croatia and Romania (both +1.2%). Decreases were observed in Finland (-0.4%), Germany (-0.3%), and Italy (-0.1%).

GDP components and contributions to growth

GDP components evolved in the second quarter of 2025 as follows:

• household final consumption expenditure increased by 0.1% in the euro area and by 0.3% in the EU (after +0.3% in both areas),

• government final consumption expenditure increased by 0.5% in the euro area and by 0.7% in the EU (after -0.1% and -0.2% respectively),

• gross fixed capital formation decreased by 1.8% in the euro area and by 1.7% in the EU (after +2.7% and +2.3% respectively),

• exports decreased by 0.5% in the euro area and by 0.2% in the EU (after +2.2% and +1.9% respectively), and

• imports were stable in the euro area and increased by 0.3% in the EU (after +2.2% and +1.9% respectively).

The contribution to GDP growth from:

• household final consumption expenditure was positive for both the euro area and the EU (+0.1 percentage points – pp for both),

• government final expenditure was positive for both the euro area and the EU (+0.1 pp for both),

• gross fixed capital formation was negative for both the euro area and the EU (-0.4 pp for both),

• changes in inventories was positive for both the euro area and the EU (+0.5 pp for both), and

• exports less imports was negative for both the euro area and the EU (-0.2 pp for both).

Employment growth in the euro area and EU

The number of employed persons increased by 0.1% both in the euro area and in the EU in the second quarter of 2025, compared with the previous quarter. In the first quarter of 2025, employment had increased by 0.2% in the euro area and had remained stable in the EU.

Compared with the same quarter of the previous year, employment increased by 0.6% in the euro area and by 0.4% in the EU in the second quarter of 2025, after +0.8% in the euro area and +0.4% in the EU in the first quarter of 2025.

Hours worked increased by 0.1% in both the euro area and the EU in the second quarter of 2025, compared with the previous quarter. Compared with the same quarter of the previous year, hours worked decreased by 0.2% in the euro area and by 0.4% in the EU.

These data provide a picture of labour input consistent with the output and income measure of national accounts.

Employment growth in Member States

In the second quarter of 2025, Bulgaria (+1.1%), Spain and Malta (both +0.7%) recorded the highest growth of employment in persons compared with the previous quarter. The highest declines of employment were recorded in Lithuania (-0.9%), Greece and Croatia (both -0.5%).

Employment levels in the euro area and EU

Based on seasonally adjusted figures, Eurostat estimates that in the second quarter of 2025, 219.9 million people were employed in the EU, of which 171.6 million were in the euro area.

Evolution of labour productivity in the euro area and EU

The combination of GDP and employment data allows an estimation of labour productivity.

In the second quarter of 2025, productivity based on persons increased by 0.8% in the euro area and by 1.2% in the EU compared to the same quarter of the previous year.

Based on hours worked, productivity compared with the same quarter of the previous year increased by 1.1% in the euro area and by 1.5% in the EU.