Eurozone Growth Stagnates as U.S. Surges

Eurozone economic growth stagnated at 0.1% in the second quarter of 2025, a marked slowdown compared to the robust 3% GDP growth in the U.S. over the same period. The weak eurozone performance is attributed to new 15% U.S. tariffs on European exports, trade imbalances, and persistent structural issues, especially impacting Germany and Italy where output contracted. France saw limited growth due to inventory accumulation, while Spain recorded a stronger 0.7% expansion. The Netherlands also experienced just 0.1% growth, driven by government spending and investment, but dampened by falling consumer spending and a widening trade deficit. Economists caution that eurozone growth is likely to remain subdued for the rest of the year as tariffs and uncertainties continue. The Dutch economy is still expected to grow 1.7% in 2025, though this is below earlier projections.