Euro area economy grows 0.6% in 1st quarter, above market expectations

By Mucahithan Avcioglu

ISTANBUL (AA)— The eurozone and EU economies expanded by 0.6% quarter-on-quarter in the first quarter of this year, above market expectations, Eurostat announced on Friday.

The figure exceeded the market expectations and Eurostat's preliminary estimate of a 0.3% growth released last month.

The increase in exports positively affected the gross domestic product (GDP) growth, with a rise of 1.9% in the eurozone.

Investments also increased by 1.8% in both the euro area and the EU (after +0.7% and +0.6%, respectively).

Among the member states, Ireland saw the highest quarterly increase with 9.7%, followed by Malta with 2.1% and the Greek Cypriot with 1.3%.

Luxembourg's economy shrank the most in the first quarter, with 1%, followed by Slovenia with 0.8% and Denmark and Portugal, both down 0.5%.

On a yearly basis, the euro area posted a GDP growth rate of 1.5%, with 1.6% for the EU, according to Eurostat.

Meanwhile, employment in the euro area rose by 0.2% on a quarterly basis in the first quarter of 2025, while it posted no change in the EU.

On an annual basis, the eurozone's employment climbed 0.7%, while the EU's was up 0.4% in the first quarter.

The eurozone/euro area, or EA20, represents member states that use the single currency—the euro—while the EU27 includes all member countries of the bloc.