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2025-07-30 18:20:56
Eurozone Growth Alert: Q2 Slowdown: How Will the Shadow of Tariffs Emerge in the Second Half of the Year? (1) Melanie Debono, an economist at Pantheon Macroeconomics, noted that eurozone economic growth slowed in the second quarter, ending the strong performance in the first quarter, which was boosted by the front-loaded effects of tariffs. (2) Data showed that eurozone economic output grew by 0.1% quarter-on-quarter in the three months ending June, significantly lower than the 0.6% growth in the first quarter. (3) Looking ahead, Debono expects the second half of 2025 to be a period of economic weakness, primarily due to the continued impact of US tariffs. (4) Furthermore, Ireland's GDP, which has grown by 19% over the past five quarters, is expected to decline further. (5) However, the rise in eurozone economic sentiment indicators, released simultaneously with the GDP data, suggests upside risks to the economy, consistent with the continued strengthening trend in monetary and credit data.
