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πŸ‡ͺπŸ‡Ί The eurozone's GDP beat isn't a recovery; it's an import collapse dressed up as one

πŸ‡ͺπŸ‡Ί The eurozone's GDP beat isn't a recovery; it's an import collapse dressed up as one

Eurostat revised eurozone Q2 GDP growth up to 0.6% quarter-on-quarter, but most of that gain traces back to a German import collapse and a distortive Irish GDP jump, not real demand, right before Thursday's expected ECB rate hike.

Line chart of German industrial production 1993–2026 versus a red dotted trend, annotated July '26: -25%, with a shattered German flag inset.
German factory output is now about 25% below former potential after Destatis revised prior months lower, even as markets price another ECB hike on Thursday. Source

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