In the first quarter of 2025, the euro area and the European Union both registered a seasonally adjusted GDP growth of 0.6% compared to the previous quarter, according to data released by Eurostat, the statistical office of the European Union. This marks an acceleration from the fourth quarter of 2024, when GDP growth stood at 0.3% for the euro area and 0.4% for the EU.
On an annual basis, seasonally adjusted GDP increased by 1.5% in the euro area and by 1.6% in the EU during the first quarter of 2025. This follows annual growth rates of 1.2% for the euro area and 1.4% for the EU in the previous quarter. The data indicates a steady recovery trajectory for both the euro area and the broader EU economy amid ongoing global economic adjustments.
Among member states, Ireland recorded the strongest quarterly GDP growth, posting a significant increase of 9.7%. This was followed by Malta with a 2.1% rise and Cyprus with a 1.3% expansion. On the other hand, several countries experienced contractions during the same period. Luxembourg saw the sharpest decline with a 1.0% decrease, while Slovenia contracted by 0.8%. Denmark and Portugal each recorded GDP declines of 0.5%.
Employment figures also showed positive, albeit moderate, developments in the euro area. In the first quarter of 2025, the number of employed persons increased by 0.2% in the euro area compared to the previous quarter, while employment remained stable in the EU as a whole. This compares with a 0.1% increase in euro area employment and a 0.2% rise in EU employment during the fourth quarter of 2024.
Year-on-year, employment in the euro area grew by 0.7% in the first quarter of 2025, while the EU recorded a 0.4% increase. These figures are slightly below the previous quarter’s annual growth rates of 0.8% and 0.6% respectively. Despite the slower pace, the employment data points to continued resilience in the labor market across much of the region.
At the national level, Croatia and Spain recorded the highest quarterly employment growth, with increases of 1.0% and 0.8% respectively. Conversely, Romania experienced the largest employment decline at 2.1%, followed by Estonia at 0.8%, while Lithuania and Poland each posted a 0.6% decrease.
According to seasonally adjusted estimates, a total of 219.8 million people were employed in the EU during the first quarter of 2025, with 171.6 million of them in the euro area. These figures underscore the continuing strength of the labor market, even as certain member states face challenges in employment growth. – By MENA Newswire News Desk.