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2025-07-29 15:42:29
Spain's economy picks up slightly, while the eurozone as a whole slows. Spain's economic growth accelerated slightly in the three months ending in June, demonstrating the eurozone's resilience despite the slowdown pressures brought on by increased US tariffs. Spain's statistics institute said Tuesday that the eurozone's fourth-largest economy grew by 0.7% in the second quarter, faster than the 0.6% expansion in the first quarter. Spain was the fastest-growing advanced economy last year, and the International Monetary Fund expects it to continue to lead through 2025. Spain's strong performance will provide some support for the 20-nation eurozone as a whole. Eurozone economic data will be released on Wednesday, and economists surveyed by The Wall Street Journal expect it to show a slight contraction compared to the previous quarter. The eurozone has already been hit by a contraction in Ireland, where many major US pharmaceutical companies have operations. In the second quarter, Ireland's economy was negatively impacted by the reversal of the "tariff rush" effect, which had driven rapid growth in the country in the first few months of the year. Looking ahead, Deutsche Bank calculates that the 15% base tariff on goods exported to the US could reduce overall EU economic growth by 0.5 percentage points.
