The EU resists at the moment. While the economies of the former continent have been experiencing since April Donald Trump’s price assaults (10% since April), growth has resisted in the second quarter.
The economy of the euro zone unexpectedly increased in the second quarter, shows the first estimate of the Gross Domestic Product (GDP) published Wednesday by Eurostat. While Bloomberg and Factstset analysts were presenting the stagnation.
A correct or even unexpected figure that covers very different realities.
The champions are next to the Iberian Peninsula. The two countries that were examined from the top of northern Europe at the beginning of 2010 and were even nicknamed “the countries of the MED club” are now the “saviors” of Europe.
Spain first, which recorded the strongest growth in the EU during the quarter with 0.7%. In the annualized rhythm, Spanish growth has increased by 2.8%.
It was doping by business investment, which increased 2.1%, with a strong increase in the construction sector, and household consumption, which increased 0.8%, after rising by 0.6%between January and March.
Then, Portugal, just behind his neighbor, who with a 0.6% growth also benefits from exports of goods and services and a rebound in household consumption.
In this landscape, France is not as bad as that. Rather, it is at the top of a prosecutor with a growth of 0.3% greater than expectations.
This “shows well, while customs duties have already been applied, that (companies) resist this situation,” said French economy of the economy, Éric Lombard.
However, with the entry into force on August 7, customs duties of 15%on August 7, entire sectors such as alcohols or the pharmacy could suffer much more at the end of the year.
Some savings have suffered much more during the quarter. If we put aside Ireland, which is a separate case with an artificially distorted GDP by the fiscal strategies of multinationals (their 1% decrease follows a 7.4% leap in the first quarter), the Dunces are Germany and Italy.
For Germany, the 0.1% decrease is due to the fall in investments, especially in construction, despite a rebound in household consumption so far.
Very exposed Italy and Germany
The German figures are broken with the registered growth rebound at the beginning of the year (+0.3% according to a figure reviewed on Wednesday).
According to Capital Economics Institute, “Germany should be touched harder than the other important economies for customs duties and continue experiencing difficulties this year, before the budget recovery measures began to stimulate the economy in 2026”.
The last weak link in Europe in the quarter is Italy. She also saw her 0.1% GDP contract compared to the first quarter.
The Italian National Statistics Agency Istat said the contraction was due to a slowdown in the added value of agriculture, forestry and fishing, as well as the industry, while the services sector has generally remained stable.
Especially net exports have weighted negatively in total production. Italy is one of the European countries that most export to the United States (67.3 billion euros in 2023) and registered a very large commercial surplus of more than 25 billion.
Drinks (39%), motor vehicles (30.7%) and pharmaceutical products (30.7%) depend on the US market. The end of the year can be very difficult for the “fact in Italy” under Trump’s era.
Source: BFM TV
