Euro area outpaces US as employment and GDP rise in 2025
In the first quarter of 2025, both GDP and employment increased in the euro area. According to preliminary estimates published by Eurostat, the gross domestic product increased by 0.3% both in the euro area and across the European Union compared to the previous quarter.
Data published by Eurostat indicate a continuation of the positive trend from the end of 2024, when GDP grew by 0.2% in the euro area and by 0.4% across the Union. Annually, compared to the first quarter of 2024, GDP increased by 1.2% in the euro area and by 1.4% in the EU, maintaining the growth rate from the previous quarter.
It is worth noting that during the same period, the United States economy experienced a decline of 0.1% compared to the previous quarter, following a growth of 0.6% in the fourth quarter of 2024. On an annual basis, US GDP grew by 2%, indicating a slowdown compared to the 2.5% growth recorded in the previous quarter.
The labour market situation in Europe
Employment data also indicate positive trends. In the first quarter of 2025, the number of employed persons increased by 0.3% in the euro area and by 0.2% across the European Union compared to the previous quarter. This is an improvement compared to the fourth quarter of 2024, when employment increased by 0.1% in the euro area and by 0.2% in the EU.
Annually, employment increased by 0.8% in the euro area and by 0.6% in the EU in the first quarter of 2025. In the euro area, the employment growth rate remained at the same level as in the fourth quarter of 2024, while in the entire EU, there was a slight acceleration from 0.5% to 0.6%.
The presented data provide a consistent picture of labour input, aligning with the measures of production and income in national accounts. It is important to note that preliminary estimates for the euro area and the EU are based on data from member states covering 99% of the euro area and EU GDP, while preliminary employment estimates are based on data covering 95% of total employment in the euro area and 92% in the EU.
Differentiated economic growth among EU countries
Data from individual member states show significant variation in economic growth rates. The highest quarterly GDP growth in the first quarter of 2025 was recorded by Ireland (3.2%), followed by Cyprus (1.3%) and Poland (0.7%). Conversely, GDP declines were noted in Slovenia (-0.8%), Portugal (-0.5%), and Hungary (-0.2%).
On an annual basis, the best results were achieved by Ireland with GDP growth of 10.9%, followed by Poland (3.8%) and Lithuania (3.2%). Negative annual GDP growth was recorded by Slovenia (-0.8%), Austria (-0.7%), Hungary (-0.4%), and Germany (-0.2%).
It is noteworthy that Germany, the largest economy in the EU, recorded an increase of 0.2% in the first quarter of 2025 compared to the previous quarter, marking a rebound after a decline of 0.2% in the fourth quarter of 2024. However, on an annual basis, the German economy continues to contract by 0.2%.
Eurostat notes that all presented data may be revised as part of the regular GDP and main aggregates estimates (including employment) scheduled for 6 June and 21 July 2025. Comprehensive estimates of European main aggregates are published approximately 65 and 110 days after the end of each quarter.
