Europe’s economy grows just 0.1% in second quarter amid tariffs

Europe's economy experienced very slow growth in the April-June quarter, with gross domestic product for the eurozone nations rising only 0.1%. This modest growth followed a stronger first quarter, which was boosted by companies front-loading shipments to avoid anticipated U.S. tariffs. Germany, the continent's largest economy, saw its output decline by 0.1%. The imposition of a 15% U.S. tariff on European goods is expected to further dampen prospects, adding costs to exports. France showed a 0.3% growth, largely due to inventory increases, while Spain was the strongest performer among the major eurozone economies at 0.7%. Economists predict continued weak growth for the region, with Germany expected to be particularly affected by the tariffs. Germany's economy has stagnated for six years, facing challenges like increased competition, labor shortages, and energy costs. The German government plans significant investment in infrastructure and other priorities starting in 2026 to stimulate economic growth. This budget aims to secure jobs and foster new economic strength.