The euro-area economy grew more than expected at the end of last year, demonstrating resilience to the trade turmoil unleashed by Donald Trump. Germany, Italy and Spain all surpassed estimates, with the latter proving the stand-out performer once again through expansion of 0.8%. Indeed, other parts of the bloc also recorded growth: GDP was up by 0.5% in the Netherlands, 0.2% in Austria, 0.8% in Portugal and 1.7% in Lithuania. While Italy saw trade act as a drag on its economy, that was more than offset by domestic demand, resulting in expansion of 0.3%. For 2025, GDP rose 0.9% — matching the pace the government was banking on in its budget plans.
