Eurozone Q2 GDP grows 0.4%, double forecasts, but Iran conflict poses risk

The Eurozone’s GDP rose 0.4% in the second quarter from the previous three months, according to preliminary data. The pace was double market expectations, indicating the economy held up well despite broader global uncertainty.

Policymakers noted that the region’s resilience was tested by the shock from the Iran war. While the data beat forecasts, the ongoing conflict was flagged as a main risk to future growth.

The stronger-than-expected performance may ease immediate recession fears, but the outlook remains clouded by geopolitical tensions.