Latest official eurozone economic data delivered a mixed snapshot as Portugal’s GDP expanded by 0.8% quarter-on-quarter in Q2 2025, while Belgium’s GDP remained flat at 0.0%, both matching market forecasts.
According to Statistics Portugal, the 0.8% expansion highlights the resilience of the Portuguese economy, supported by robust domestic demand and a recovering tourism sector. The quarterly reading matched economist consensus, indicating steady but moderate momentum. On an annual basis, Portugal’s economy grew at a stronger rate, although the quarterly figure remains the key short-term indicator. The data supports the government’s fiscal projections and points to sustained consumer confidence, though economists caution that external risks such as energy price volatility and slowing global trade could temper expansion later in 2025.
Belgium’s National Bank reported that GDP was unchanged in Q2 2025, following a modest 0.2% increase in Q1. Year-on-year, the Belgian economy grew by 1.1%, slightly above the eurozone average. The performance was mixed across sectors: services remained resilient, while manufacturing and construction contracted due to weak foreign orders and high energy costs. Public debt above 100% of GDP continues to limit the government’s room for fiscal stimulus.
Financial markets showed little immediate reaction to the releases, as both outcomes were widely anticipated. The euro held steady and Portuguese bond yields remained unchanged, suggesting investors viewed the data as supportive but not transformative. The Belgian stagnation may still influence the European Central Bank’s policy stance as it balances prolonged economic weakness against inflationary pressures. Analysts will monitor third-quarter indicators, including industrial production and employment data, for signs of a rebound or further softening.
