The eurozone continues to hold up better than expected in the face of repeated tariff shocks and subdued international demand for its exports. “Companies in both the service sector and the manufacturing industry are also quite optimistic about the next 12 months which bodes well for GDP growth of more than 1% this year,” he said. The eurozone continues to hold up better than expected to repeated tariff shocks and subdued international demand for its exports. “Barring any unexpected short-term volatility, euro area activity is expected to gradually recover, supported by domestic demand,” the European Central Bank said in an economic bulletin published Thursday. In the U.K., business activity neared a two-year high, with a surge in manufacturing activity driven by a postpandemic record in export orders.

Source: Wall Street Journal February 20, 2026 18:04 UTC