Eurozone GDP Growth Accelerated, Germany's Economic Recession Extended to 7th Quarter

Bridgette Randall
30 Apr, 2025
London

European markets advanced in Wednesday's trading as investors reviewed a wave of earnings and GDP data in the region. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after banks and financial services providers reported sharply higher earnings. 

Societe Generale, Barclays, UBS, and Adyen NV reported better-than-expected quarterly results, supporting the market advance. 

Market sentiment was further bolstered after the Trump administration lowered tariffs on aluminum and steel but retained a 25% tariff on imported automobiles. 

 On the economic front, Germany, France, and the Eurozone reported mixed growth data. 

 

Germany's Economic Recession Extended to Seventh Consecutive Quarter

Germany's GDP in the first quarter expanded 0.2% from the previous quarter and recovered from a 0.2% contraction in the previous quarter, the Federal Statistical Office reported Wednesday. 

However, on an annual basis GDP contracted 0.2%, marking its seventh consecutive quarter of recession. 

 

Stable Economic Growth In France

France's GDP expanded 0.1% in the first quarter, reversing a 0.1% contraction in the fourth quarter, the INSEE reported Wednesday. 

Household consumption was flat, and international trade remained a drag on the economic growth in the first quarter. 

On an annual basis, France's GDP expanded 0.8%, matching the upwardly revised growth in the fourth quarter. 

 

Eurozone Economic Growth Accelerated In First Quarter 

In the first quarter of 2025, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.3% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.

On an annual basis, GDP expanded 1.2% in the eurozone and rose 1.4% in the European Union. 

 

Europe Indexes and Yields

The DAX index increased by 0.7% to 22,592.45, the CAC-40 index edged higher by 0.5% to 7,592.10, and the FTSE 100 index declined by 0.02% to 8,461.59.

The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.19%, UK gilts moved down to 4.44%, and Italian bonds edged lower to 3.58%.

The euro decreased to $1.14; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.50 Swiss cents.

Brent crude decreased $0.99 to $62.28 a barrel, and the Dutch TTF natural gas was lower by €0.14 to €31.68 per MWh.

 

Europe Movers

UBS Group AG traded flat at CHF 24.97 after the Swiss bank and wealth management company's first-quarter results surpassed market expectations, driven by sharp gains in its investment banking unit.  

Revenue slipped to $12.56 billion from $12.74 billion, net profit edged down to $1.69 billion from $1.75 billion, and diluted earnings per share inched down to 51 cents from 52 cents a year ago.

Barclays PLC dropped 0.3% to 297.40 pence after the UK-based bank reported a sharp increase in pre-tax profit, driven by an increase in the investment banking unit. 

Revenue increased to £7.7 billion, and pre-tax income advanced 11% to £2.7 billion, driven by a 16% increase in profit in its investment banking unit to £3.87 billion. 

Societe Generale NV increased 3.4% to €45.45, and the French bank reported a jump in revenue in the first quarter, driven by a surge in its net interest income. 

Operating income in the first quarter soared 69% to €2.14 billion from €1.27 billion, and net income advanced to €1.61 billion from €680 million a year ago, respectively. 

Investment banking unit revenue increased by 10%; however, revenue from trading in fixed income and currencies declined 2.4%. 

Net interest income soared 28% in the quarter, driven by a surge in mortgage loan volume. 

Adyen NV declined 4.8% to €1,378.40 after the Dutch payment processing service provider reported weaker-than-expected quarterly revenue.

Net revenue jumped 22% to €534.7 million from €438.0 million a year ago, driven by strong demand from existing customers, particularly in Europe and North America.

“Unified Commerce continues to show strong momentum with net revenue up 31% year-over-year, fueled by an increasingly diversified customer base across different verticals,” the company said in a release to investors.

During the quarter, processed volume was €314.8 billion, an increase of 6% from the prior year.