Economic Buzz: Eurozone GDP growth accelerates to 0.4% in Q2 2026

The Eurozone economy expanded 0.4% in the second quarter of 2026, accelerating from flat growth in Q1 and confirming the flash estimate. Strong AI-related investment, robust government spending and one-off factors helped the bloc withstand the impact of the Iran conflict and elevated energy costs. Spain led among major economies with 0.7% growth, while France returned to expansion at 0.2% and Germany and Italy grew 0.2% each. On an annual basis, Eurozone GDP growth doubled to 1% from a revised 0.5% in Q1, pointing to a modest but broad-based recovery.

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