(Alliance News) - The eurozone economy expanded faster than initially estimated at the start of 2025, with both output and consumption showing improvement, official data showed Friday.

According to Eurostat, gross domestic product in the euro area grew by 0.6% quarter-on-quarter in the first three months of 2025, accelerating from 0.3% in the previous quarter and above the flash estimate of 0.3% published on May 15.

On an annual basis, GDP rose by 1.5%, up from the flash estimate of 1.2%.

The wider EU also saw GDP grow by 0.6% on the quarter, in line with the flash estimate, and by 1.6% annually, above the initial estimate of 1.4%.

The upturn was driven by strong gross fixed capital formation, which rose 1.8% in both the euro area and EU, and a 1.9% increase in eurozone exports. Household consumption contributed positively, though it slowed to 0.2% growth from 0.5% in the prior quarter.

Employment in the euro area rose by 0.2% in the first quarter, up from 0.1% in the previous quarter. In the wider EU, employment was unchanged, following a 0.2% increase in the prior quarter.

Compared to the same quarter in 2024, employment was up 0.7% in the euro area and 0.4% in the EU. However, hours worked declined by 0.3% in both zones from the previous quarter.

Among member states, Ireland recorded the largest GDP gain at 9.7%, while Luxembourg saw the biggest fall at 1.0%.

Separately, Eurostat on Friday reported that eurozone retail trade volumes rose 0.1% in April from March, while the EU saw a stronger 0.7% monthly increase. Annual growth stood at 2.3% for the euro area and 2.8% for the EU.

Within categories, sales of food, drinks and tobacco rose 0.5% in the eurozone and 0.9% in the EU, while non-food retail slipped slightly. Automotive fuel sales climbed in both areas.

Among individual countries, Poland led with a 7.5% monthly jump in total retail trade, while Germany saw a 1.1% decline.

By Eva Castanedo, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.