Euro Weekly Digest

Latest edition · July 31, 2026

26 07 31 Euro Weekly Digest

Euro area GDP growth beat expectations at 0.4% q/q in Q2, driven by resilient domestic demand despite geopolitical headwinds. Meanwhile, bank lending remains robust, though headline inflation has ticked up to 2.9%.

The Euro Weekly Digest reports that Euro area GDP growth reached 0.4% q/q in Q2, surprising to the upside across Germany, Italy, and Spain. Despite widespread geopolitical uncertainty, bank lending performance remains robust, contradicting previous expectations of a credit-led slowdown. Headline inflation reached 2.9% in July with core inflation at 2.5%, suggesting some energy cost pass-through. While confidence surveys are positive, the report notes these were conducted prior to the most recent escalation of market tensions, and the ECB remains in a position where further hiking may be necessary if inflation risks materialize.

Key takeaways from the latest edition

• 1.Euro area GDP grew by 0.4% q/q in Q2, beating expectations and showing resilience in domestic demand.
• 2.Bank lending remains robust despite geopolitical uncertainty, contradicting bank lending survey expectations.
• 3.Headline HICP rose to 2.9% and Core HICP to 2.5%, showing tentative signs of energy shock feed-through to core goods.

What this series covers

• Week in review
• Week ahead

Edition archive

• 26 07 31 Euro Weekly Digest

  July 31, 2026

• 26 07 10 Euro Weekly Digest

  July 10, 2026

• 26 06 26 Euro Weekly Digest

  June 26, 2026