(Sept 7): The eurozone economy expanded more than initially thought in the second quarter after a sharp upward revision in Ireland.

Gross domestic product increased 0.6%, up from a preliminary estimate of 0.4%, Eurostat said Monday. That’s the strongest quarterly pace in more than a year and comes after the 21-nation stagnated in the first three months of 2026.

The revision was triggered by Ireland, which said last week that output jumped by 10.2% between April and June. That’s up from an earlier reading of 3.9% thanks to a strong performance by multinationals that include Apple Inc and Eli Lilly & Co.

The economies of France, Austria and Portugal, on the other hand, all fared worse than initially thought.

Despite inflation at a three-year high due to the Iran war and borrowing costs rising, the outlook is looking rosier for Europe as governments spend big on defence and infrastructure, and companies invest in artificial intelligence. Germany, the region’s largest economy, appears to be leaving behind a years-long malaise.

Eurostat’s data are the last major input for the European Central Bank before it sets interest rates on Thursday. Investors are betting on a quarter-point increase, a move officials will be more confident about knowing growth in the 21-nation economy is robust.

Analysts including Bantleon’s Daniel Hartmann now expect expansion of more than 1% this year, well above the 0.8% predicted by the ECB in June. Economists at JPMorgan, BNP Paribas and Societe Generale are among those who’ve recently added a hike by the ECB at year-end to their outlooks.

In the second quarter, trade and household spending were the main contributors to growth. Employment advanced by 0.1%.

Uploaded by Magessan Varatharaja