The Eurozone economy expanded by just 0.1% quarter-on-quarter in the second quarter of 2025, a sharp slowdown from the 0.6% growth recorded in the previous quarter, according to a preliminary estimate. Despite beating market expectations of flat growth, it marked the weakest pace of expansion since late 2023. The slowdown reflects growing caution among businesses and households, as they weigh easing inflation and lower borrowing costs against rising trade uncertainty, particularly due to US tariffs. Among the bloc’s major economies, Spain and France outperformed with growth of 0.7% and 0.3%, respectively. The Netherlands posted modest growth of 0.1%, while both Germany and Italy slipped into contraction, each shrinking by 0.1%.