Eurostat's latest figures indicates a consistent rate of inflation within the eurozone. What details does the data reveal?
The Economy Day to Day podcast, presented by economics journalists of Expresso, is a daily podcast that provides a two-minute summary of national and international economic numbers. The podcast is available on various podcast platforms and discusses major news on Saturdays.
Recent economic analyses and reports, though not specifically from the Economy Day to Day podcast or Expresso news due to lack of source-specific data, focus on very weak but positive GDP growth, cautious monetary policy by the ECB, and mixed labor market conditions in the Eurozone.
Let's delve into some key points:
- The Eurozone GDP grew by only 0.1% in the second quarter of 2025, a significant slowdown from a 0.6% increase in the prior quarter. Compared year-on-year, growth was 1.4%, slightly lower than before. Spain showed the strongest quarterly growth (+0.7%), while Germany and Italy had small declines (-0.1%) and Ireland a sharper fall (-1.0%).
- The European Central Bank (ECB) is signaling a pause in rate cuts, reflecting a nearing end to its monetary policy cycle, but is open to further easing if growth weakens further. Inflation is near the ECB's 2% target, but growth prospects are deteriorating, so an additional rate cut later in 2025 is possible.
- The labor market remains relatively robust overall, with the Eurozone unemployment rate slightly rising to 6.3% in May 2025. Italy experienced a notable increase in unemployment due to more people entering the labor force; Germany’s rate remained steady and France and Spain showed some improvement.
- Trade tensions and tariffs, especially in relation to the US, are pressuring Eurozone exports and growth prospects. The introduction of a 15% US tariff on European goods is expected to increase costs and squeeze profits for European exporters, contributing to the subdued growth outlook.
- Overall growth forecasts for the Eurozone GDP stand at about 0.9% in 2025, expected to pick up slightly to around 1.3-1.4% in 2026 as conditions stabilize and key economies like Germany recover more steadily.
In the latest news, Eurostat, on Friday, published a rapid estimate indicating a 2% inflation rate in the euro zone for July. The inflation rate in July, as per Eurostat, was 2% for the euro zone, maintaining stability from the previous month.
Stay tuned to the Economy Day to Day podcast on Expresso.pt for more insightful discussions on these and other economic topics in the Eurozone.
- Despite the recent growth slowdown in the Eurozone, finance experts are closely watching the Eurozone GDP, with expectations of a possible recovery in 2026, especially in key economies like Germany.
- Businesses in the Eurozone are grappling with increased costs and profit squeezes due to trade tensions and tariffs, particularly those related to the US, which may further impact overall growth prospects.
