Quarterly national accounts – GDP and employment – Statistics Explained

Highlights

This article presents key messages and data extractions based on Eurostat’s updated estimation of quarterly gross domestic product (GDP) for the second quarter of 2025 in the European Union (EU) and euro area (EA-20) released on 20 October 2025. This completes a sequence of quarterly estimates of European main national accounts aggregates (including employment) that are based on available country data (see previous news releases).

Compared with the previous release on 5 September 2025, the growth rates remained unchanged for both the euro area and the EU.

Please note that particular developments in GDP that are observed for the euro area and the EU are often related to the activities of MNEs in the Irish economy.

Quarterly GDP growth

GDP up by 0.1% in the euro area and up by 0.2% the EU

According to an estimate (see Data sources below) published by Eurostat, seasonally adjusted GDP increased by 0.1% in the euro area and by 0.2% in the EU in the second quarter of 2025, compared with the previous quarter. In the first quarter of 2025, GDP had increased by 0.6% in the euro area and by 0.5% in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.5% in the euro area and by 1.6% in the EU in the second quarter of 2025, after an increase of 1.6% in the euro area and 1.7% in the EU in the previous quarter.

During the second quarter of 2025, GDP in the United States increased by 0.9% compared with the previous quarter (after -0.2% in the first quarter of 2025). Compared with the same quarter in the previous year, GDP grew by 2.1% (after +2.0% in the previous quarter).

GDP growth by EU country

Within the EU, the highest increases of GDP were recorded in Romania (+1.2%), Croatia (+1.1%), and Denmark (+1.0%) in the second quarter of 2025, while decreases were observed in Finland (-0.4%), Germany (-0.3%), Italy and Austria (both -0.1%).

GDP components and contributions to growth

GDP components evolved in the second quarter of 2025 as follows

household final consumption expenditure increased by 0.2% in the euro area and by 0.3% in the EU (after +0.3% in both areas in the previous quarter) government final consumption expenditure increased by 0.5% in the euro area and by 0.7% in the EU (after -0.1% in the euro area and -0.2 in the EU) gross fixed capital formation decreased by 1.8% in the euro area and by 1.6% in the EU (after +2.5% in the euro area and +2.1 in the EU) exports decreased by 0.5% in the euro area and by 0.2% in the EU (after +2.3% in the euro area and +1.9 in the EU) and imports decreased by 0.1% in the euro area and increased by 0.3% in the EU (after +2.3% and +1.9% respectively).

The contribution to GDP growth from

household final consumption expenditure was positive for both the euro area and the EU (+0.1 percentage points (pp) and + 0.2 pp respectively) government final expenditure was poitive in both zones (both 0.1 pp) gross fixed capital formation was negative for both the euro area and the EU (-0.4 pp and -0.3 pp respectively) changes in inventories was positive for both the euro area and the EU (+0.5 pp for both), and exports less imports was negative for both the euro area and the EU (-0.2 pp for both).

Figure 2: Decomposition of GDP growth by expenditure aggregates
Source: Eurostat (namq_10_gdp)

Quarterly employment growth

Number of employed persons up by 0.1% in both the euro area and the EU

The number of persons employed increased by 0.1% in both the euro area and the EU in the second quarter of 2025 compared with the previous quarter. In the first quarter of 2025, employment had increased by 0.2% in the euro area and by 0.1% in the EU. Hours worked also increased by 0.1% in both zones in the second quarter of 2025 (after -0.2% in the euro area and -0.3% in the EU in the first quarter of 2025).

Compared with the same quarter of the previous year, employment based on persons increased by 0.6% in the euro area and by 0.4% in the EU in the second quarter of 2025 (after +0.8% in the euro area and +0.4% in the EU in the first quarter of 2025).

The number of hours worked fell by 0.3% in the euro area and by 0.5% in the EU in the second quarter of 2025, compared with the same quarter of the previous year (after +0.2% in the euro area and -0.2% in the EU in the first quarter of 2025).

These data on employment provide a picture of labour input consistent with the output and income measure of national accounts.

Table 2: Growth rates of employment in persons (¹)
Source: Eurostat (namq_10_a10_e)

Table 3: Growth rates of employment in hours worked(¹)
­Source: Eurostat (namq_10_a10_e)

Figure 3: Growth of employment in persons and hours worked
Source: Eurostat (namq_10_a10_e)

Employment growth by EU country

Among EU countries, the highest increases in employment in persons were observed in Bulgaria, Spain, Cyprus, Malta and Portugal (+0.7% for all). Croatia (-0.9%), Greece and Romania (both -0.5%) recorded the strongest declines in the second quarter of 2025 compared with the previous quarter.

Latvia and Slovenia (both +2.6%) and Estonia (+2.2%) display the highest increases in employment measured in hours worked. Austria (-0.6%), Hungary (-0.5%), Romania and Sweden (both -0.4%) showed the steepest decreases in employment measured in hours in the second quarter of 2025 compared to the previous quarter.

Employment levels

Employment in persons increased by 0.2 million in the euro area and by 0.3 million in the EU

Based on seasonally adjusted figures, Eurostat estimates that in the second quarter of 2025, 220.2 million people were employed in the EU, of whom 171.8 million were in the euro area.

Figure 5: Evolution of employment in persons and hours worked
Source: Eurostat (namq_10_a10_e)

Labour productivity

The combination of GDP and employment data allows an estimation of labour productivity.

In the first quarter of 2025, productivity based on persons increased by 0.9% in the euro area and by 1.2% in the EU compared with the same quarter of the previous year.

Compared with the same quarter of the previous year, productivity based on hours worked increased by 1.2% in the euro area and by 1.6% in the EU.

Source data for tables and graphs

Data sources

Eurostat collects GDP and employment data in the framework of ESA 2010. Additional information on the dissemination of ESA 2010 data is available under publications on the dedicated website and in the database section National Accounts (ESA 2010).

European aggregates are published at specific release dates. The preliminary flash estimate of GDP growth of the third quarter of 2025 will be released on 30 October 2025 and will be updated on 14 November 2025. The next regular estimates of European aggregates are due on 5 December 2025 (for both GDP and employment estimates). Revision triangles for GDP for the euro area and the EU can be found here. These revision triangles are updated once per quarter.

For further details see the Eurostat website.

Context

Quarterly figures on the evolution of gross domestic product (GDP) and its main aggregates are among the most significant indicators of the state of any economy, be it at a national or European level and are of key interest to users. Typical users of quarterly national accounts (QNA) figures are market analysts, forecasters or economic and monetary policy advisors interested in assessing the state of the current business cycle.

The ESA 2010 distinguishes between 2 employment concepts depending on geographical coverage: resident persons in employment (i.e. the national scope of employment) and employment in resident production units irrespective of the place of residence of the employed person (i.e. domestic scope). The ESA 2010 recognises several employment measures: persons, hours worked and jobs. Eurostat publishes mainly employment data measured in persons and in hours worked.

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