Economic growth across Europe showed a mixed picture in 2025, with Spain emerging as the strongest performer among the largest economies while Germany lagged near the bottom, according to new figures.

Data from Eurostat showed that the European Union’s real gross domestic product grew by 1.5 percent in 2025, up from 1.1 percent the previous year. However, growth varied widely between countries, reflecting structural differences and external pressures.

Ireland stood out with a 12.3 percent expansion, far exceeding other nations. Analysts attributed this to the influence of multinational corporations operating in the country, rather than domestic economic activity. Smaller economies including Malta and Cyprus also posted strong growth of 4 percent and 3.8 percent respectively. Several eastern and southeastern European countries, such as North Macedonia, Croatia and Bulgaria, recorded gains above 3 percent, continuing a trend where less developed economies expand faster as they catch up.

Among the EU’s largest economies, Spain led with growth of 2.8 percent. In contrast, Germany recorded just 0.2 percent, placing it at the bottom alongside Finland. Italy also remained weak at 0.5 percent, while France posted a modest 0.8 percent increase.

Economists said Germany’s slowdown reflects pressure on its export-driven model, partly due to increased global competition, particularly from China. This shift has weighed on traditional manufacturing powerhouses across northern Europe.

Spain’s performance, on the other hand, has been supported by different factors. A growing population, driven by immigration, has boosted economic activity and expanded the labour force. Tourism has also played a significant role, with Mediterranean countries benefiting from strong visitor numbers in recent years.

However, experts cautioned that strong headline growth does not always translate into improved living standards. Productivity in some major economies remains weak. In Spain, output per worker declined slightly, while gains in output per hour worked were minimal. This suggests that wage growth may remain limited despite overall economic expansion.

Looking ahead, projections from the Organisation for Economic Co-operation and Development indicate Spain’s economy could grow by 2.2 percent in 2026, maintaining its lead among Europe’s largest economies. By comparison, the United Kingdom is expected to grow by around 1.2 percent.

Across the Nordic region, growth trends also diverged. Denmark recorded solid expansion of 2.9 percent, while Sweden matched the EU average. Iceland and Norway posted weaker growth, highlighting uneven economic conditions across the region.

Analysts said the data underscores a broader divide within Europe, where population growth, domestic demand and sectoral strengths are increasingly shaping national economic performance.

Chocolate prices across the European Union rose sharply in 2025, recording the highest increase among food products as rising cocoa costs and supply shortages pushed prices higher for consumers.

According to data from Eurostat, chocolate prices climbed by 17.9 percent across the EU last year. The increase far exceeded other major food items, including beef and veal, which rose by about 10 percent, while eggs and butter increased by around 8 percent.

Overall consumer prices in the EU rose by 2.5 percent in 2025 based on the annual average rate of change. Food and non-alcoholic beverages saw slightly stronger inflation at 3.3 percent, but chocolate stood out as the fastest-rising product in the category.

The impact was not uniform across Europe. In EU member states, annual chocolate price inflation ranged from 6.6 percent in Slovakia to 32.6 percent in Poland.

When other European countries are included, the range becomes even wider. Prices rose only 1.6 percent in Albania but surged by 44 percent in Turkey, where inflation remains significantly higher than the European average.

Several countries reported particularly steep increases. Chocolate prices rose by more than 25 percent in Estonia and Lithuania at 31.5 percent each, followed by Romania at 26.1 percent, Latvia at 25.9 percent and Serbia at 25.4 percent.

In larger European economies, price increases were more moderate. Chocolate inflation reached about 14 percent in France and 12.3 percent in Belgium. The Office for National Statistics reported that chocolate prices rose by 16.2 percent in the United Kingdom during the same period.

Economists say the sharp rise is largely tied to disruptions in global cocoa supply. Emiliano Magrini, an economist at the Food and Agriculture Organization, said the surge in cocoa prices was driven by severe production problems in West Africa.

Cocoa output dropped significantly in Côte d’Ivoire and Ghana, which together produce a large share of the world’s cocoa. Prolonged dry weather and the spread of cocoa swollen shoot virus disease reduced harvests and pushed global inventories to very low levels.

John Baffes, a senior economist at the World Bank, said cocoa prices increased dramatically during the past two years. Average prices rose from about $3.28 per kilogram in 2023 to $7.80 in 2025, representing one of the largest commodity price surges recorded.

Analysts note that differences in national chocolate industries have also influenced how price increases reach consumers. Countries with strong domestic manufacturing sectors, such as Germany and Italy, have been able to absorb some of the higher costs through large production networks and long-term supply contracts.

In contrast, countries that rely more heavily on imports often pass global price increases more directly to shoppers, resulting in steeper rises at supermarket shelves.