Eurozone GDP expands 0.4% in Q2, confirming economic stabilization

Hard data validates earlier PMI signals of recovery, reducing recession fears and supporting the case for ECB rate cuts later this year.

By Handelsavisen Newsroom · Automated 2026-07-30 09:07 UTC · 1 min read

The eurozone economy grew by 0.4% in the second quarter of 2026, according to data released by Eurostat on Thursday.

The quarterly expansion confirms that the region has exited a period of stagnation, providing concrete evidence of the stabilization hinted at by earlier survey data.

This growth figure aligns with preliminary Purchasing Managers’ Index (PMI) data from July, which indicated the first expansion in economic activity in four months.

The convergence of hard GDP data and survey indicators suggests that the eurozone’s economic downturn has bottomed out, with activity in both the eurozone and the United Kingdom showing signs of recovery alongside moderating price pressures.

For markets, the data reduces the probability of a recessionary scenario in the euro area, potentially easing pressure on European equities and supporting the euro.

The stabilization also reinforces the narrative that the European Central Bank may have room to continue its easing cycle, as inflation pressures appear to be cooling alongside the return of growth.