Euro Area Shows Signs of Resilience as Trade, Employment and Growth Strengthen

Eurozone Employment Inches Up as Expected

The number of employed persons in the Euro Area grew by 0.1% from the previous quarter to 176.577 million in the second quarter of 2026, the same pace as the first quarter, and aligned with market expectations, according to a first estimate. It was the bloc’s 21st consecutive quarter of employment growth, extending the slow but consistent trend of increasing jobs in the European labor market, even though high energy prices and sluggish productivity led economic headwinds in the period. Job growth remained sharp in Spain (0.5% vs 0.3% in Q1) while net employment for a third period in France. Meanwhile, employment fell for a fifth straight quarter in Germany (-0.1% vs -0.1%). From the previous year, employment growth in the Eurozone was unchanged at 0.5%.

Euro Area GDP Growth Unrevised at 0.4%

The Eurozone economy expanded by 0.4% in the second quarter of 2026, in line with flash data and accelerating from flat growth in the previous quarter, second estimates showed. It marked the bloc’s strongest quarterly expansion since the first quarter of 2025, as robust AI-related investment, solid government spending, and one-off factors helped offset the impact of the conflict in Iran and higher energy costs. Among the largest euro area economies, Spain once again led growth, with GDP rising 0.7%, up from 0.6% in the first quarter and above forecasts. The Netherlands expanded by 0.4%, twice the expected pace, while France returned to growth with a 0.2% increase after a 0.1% contraction. Germany and Italy also grew by 0.2%, easing slightly from the previous quarter but exceeding market expectations. Year-over-year, the Eurozone economic growth accelerated to 1% in the second quarter from a revised 0.5% three months earlier, also the same as in the flash estimate.

Euro Area Posts Surprise Trade Surplus

The Euro Area recorded a trade surplus of €8.6 billion in June 2026, up from €4.8 billion in June 2025 and better than market expectations of a €2.2 billion gap. This was the largest monthly trade surplus since February, as goods exports surged by 14.4% to an over one-year high of €272.5 billion while imports rose at a slower 13.1% to €264 billion. The latest figure represented an improvement of €3.8 billion compared to the same period a year ago, supported primarily by a stronger surplus in chemicals and related products and additional surpluses in other manufactured goods and food and drink, which more than offset the larger energy deficit. The machinery and vehicles surplus also registered a modest improvement.

Register a Revolut Business Account